In a recent segment of CNBC's "Mad Money," renowned market commentator Jim Cramer expressed his support for Shopify Inc. (NYSE:SHOP), positioning the company as a strong player in the e-commerce industry along with rival Jeff Bezos' Amazon.

What Happened: On Wednesday, Cramer gave a nod of approval to Shopify during the Lighting Round segment of CNBC, emphasizing its strong performance with small and medium-sized businesses and comparing it with Amazon.

"I like e-commerce. I like Amazon more than Shopify, but I think Shopify does an absolutely terrific job with small, medium-sized businesses, consumer packaged goods companies. I would stick by it."

Why It Matters: Cramer's endorsement comes at a pivotal time for Shopify, following a tumultuous period where the company's stock experienced a sharp decline after its Q4 performance. Despite surpassing revenue expectations with a 24% year-over-year increase to $2.14 billion, the stock took a hit, which may have been due to concerns over future growth prospects.

Additionally, before the earnings release, there was a sense of caution among analysts regarding Shopify's valuation. An analyst report highlighted the challenges in justifying the stock's valuation, suggesting that caution may be warranted.

Price Action: As of the latest trading session, Shopify saw its stock price close at $81.33, marking a 4.90% increase from the previous close, according to data from Benzinga Pro.

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