Cramer Explains How The 'Little Guy' Benefits From Shopify, Square
Canadian e-commerce facilitator Shopify Inc (NYSE: SHOP) helps power online stores run by some of the biggest celebrities like Drake and Kyle Jenner.
The company should be better known for helping the "little guy" who's looking to sell their products to the world, according to CNBC's Jim Cramer.
For each major celebrity that relies on Shopify to sell their goods online, there are likely thousands of entrepreneurs who rely equally on Shopify's platform to "fulfill their dreams," Cramer said during his daily "Mad Money" show Wednesday.
Shopify offers small customers services like Shopify Payments and Shopify Shopping that eliminate a third party and hidden fees.
Shopify isn't the only company that helps small businesses thrive, Cramer said. Payment company Square Inc (NYSE: SQ) not only offers small businesses payment processing solutions, but also offers loans, immediate access to their cash through debit cards and a food delivery app for restaurants.
Why It's Important
Online stores powered by Shopify or Etsy Inc (NASDAQ: ETSY) give consumers the ability to find hand-crafted goods that typically make better presents, Cramer said.
"My daughter knows I like cuff links — take it from me, you don't want to buy cuff links from mass merchants," Cramer said. "You go Etsy, you see the hand-crafted nature, so terrific."
Companies that help power small businesses is a theme that needs to be continuously revisited, Cramer said, adding that the stocks he mentioned "may be worth more than we think" — especially Shopify.
Photo courtesy of Square.
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.