Shopify (SHOP) is an e-commerce platform that enables businesses of all sizes to set up an online store. It offers users a customizable platform, an easy-to-use checkout process, and a wide range of features.
Shopify’s share price has been on a tear in recent years, more than doubling since 2016. The stock is up nearly 50% so far in 2020, as the coronavirus pandemic has accelerated the shift to online shopping.
Investors are betting that Shopify will continue to benefit from the long-term trend of e-commerce growth. And with the company’s recent expansion into new areas like point-of-sale software and fulfillment services, there’s reason to believe that Shopify can continue to grow at a rapid pace.
So, is Shopify stock a buy at its current price? Let’s take a closer look at the company to see if it makes sense as an investment.
Shopify is a leader in the e-commerce space, with a market share of around 2.9%. That might not sound like much, but it puts Shopify ahead of much larger rivals like Amazon (AMZN), which has a market share of around 1.
Shopify is also one of the fastest-growing companies in the e-commerce space. Its revenue rose 47% in 2019 to $1.58 billion, and its gross merchandise volume (GMV) grew even faster, rising 54% to $41.1 billion.
What’s more, Shopify is profitable, unlike many other fast-growing tech companies. Its net income rose to $257 million in 2019, up from just $8 million in 2016.
Shopify’s strong financials have allowed it to invest heavily in growth initiatives. The company has been expanding into new areas like point-of-sale software and fulfillment services, which should help it keep growing at a rapid pace.
So far, Shopify’s expansion into these new areas appears to be paying off. In the first quarter of 2020, Shopify’s revenue rose 47% year over year to $470 million, while its GMV grew 55% to $13.8 billion.
The company is also benefiting from the coronavirus pandemic, as more businesses move online and turn to Shopify for help setting up their e-commerce operations. In the first quarter of 2020, Shopify added 175,000 new merchants, bringing its total number of customers to 1.7 million.
Shopify stock isn’t cheap, but given the company’s strong growth prospects, it could still be a good buy for long-term investors.
PRO TIP: Shopify stock is not a buy. There are many better options out there.
Is Shopify Stock a Buy?
Based on the company’s strong growth prospects and leading position in the e-commerce space, I believe that Shopify stock is a good buy for long-term investors.
10 Related Question Answers Found
Shopify stock is up over 400% in the past year, and continues to be one of the hottest stocks on the market. But is it a good buy? Shopify is a leading ecommerce platform that enables businesses of all sizes to create an online store.
Shopify (SHOP) is an e-commerce platform that enables businesses of all sizes to create an online store. It offers a customizable platform, an easy-to-use checkout process, and a wide range of features. Shopify’s platform is based on three pillars: simplicity, flexibility, and scalability.
Shopify (SHOP) is a Canadian e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants.
Shopify (SHOP) went public in 2015 and has since then delivered stellar returns to investors. The stock is up almost 600% since its IPO, and it doesn’t show any signs of slowing down. With a market cap of over $60 billion, Shopify is now the largest e-commerce platform in North America.
Shopify, one of the hottest tech companies in Canada, is considering a stock split. The e-commerce platform provider is said to be mulling over the move in order to make its shares more accessible to a wider range of investors, according to sources familiar with the matter. Shopify has been on a tear lately, with its stock price more than doubling in the past year.
Shopify is a Canadian e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants.
Shopify is a publicly traded company on the New York Stock Exchange (NYSE) and Toronto Stock Exchange (TSX) with the ticker symbol SHOP. As of June 2020, Shopify had a market capitalization of over $41 billion. Shopify is a leading ecommerce platform with over one million active users in 175 countries.
Shopify (SHOP) is a Canadian e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants.”
Shopify was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake.
Shopify is one of the most popular ecommerce platforms on the market. It allows businesses of all sizes to create an online store and sell their products to customers around the world. While Shopify does have some competition from other ecommerce platforms, it still remains one of the top choices for businesses looking to sell online.
Shopify is one of the hottest stocks on the market today, and for good reason. The company has been growing at an incredible pace, and its platform is used by some of the biggest brands in the world. Shopify is a buy for those who are looking for long-term growth potential.
