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.”
As of May 2019, Shopify has more than 1,000,000 businesses in approximately 175 countries and is trusted by brands such as Tesla, Red Bull, Nestle, GE, Kylie Cosmetics, and many more.
Shopify was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake after attempting to open Snowdevil, an online store for snowboarding equipment. Snowdevil was unsuccessful due to the lack of an adequate e-commerce platform at the time.
Lütke, Weinand, and Lake then decided to build their own platform which eventually became Shopify.
Shopify went public on the New York Stock Exchange (NYSE) on May 21st, 2015. Since its initial public offering (IPO), Shopify stock has been on a tear. As of July 2019, SHOP stock is up nearly 600%.
So what’s driving Shopify’s incredible run? And what does the future hold for SHOP stock? Let’s take a closer look.
The Drivers of Shopify Stock
Shopify’s incredible run can be attributed to three main drivers:
1. Rapidly Growing Revenue
Shopify has posted rapidly growing revenue in recent years. In 2018, Shopify’s revenue rose 58% year-over-year to $1.07 billion. In the first quarter of 2019, Shopify’s revenue increased 54% year-over-year to $321 million.
PRO TIP: If you are thinking about investing in Shopify stock, be aware that the forecast for the company’s future is mixed. While some experts believe that Shopify will continue to be a strong performer, others have expressed concerns about the company’s ability to sustain its current growth rate.
2.
Strong Gross Merchandise Volume (GMV) Growth
GMV is the total value of all orders processed through Shopify’s platform. GMV growth is a key metric because it represents the growth of Shopify’s merchants.
In 2018, Shopify’s GMV rose 49% year-over-year to $23.8 billion. In the first quarter of 2019, GMV increased 52% year-over-year to $8.05 billion.
3. Increasing Margins
Shopify is also posting increasing margins as it scales its business.
In 2018, Shopify’s gross margin rose from 46.7% to 50%. In the first quarter of 2019, gross margin increased from 50.3% to 52%.
The Future Holds for SHOP Stock.
What does the future hold for SHOP stock? Based on Shopify’s strong fundamentals and rapid growth trajectory, it seems likely that SHOP stock will continue to outperform in the coming years.
7 Related Question Answers Found
Shopify Inc. (NYSE: SHOP) stock has been on a tear in 2020, up over 170% year-to-date. The company has benefited from the dramatic shift to online shopping during the COVID-19 pandemic. With more people shopping online than ever before, Shopify has been able to capitalize on this trend with its ecommerce platform.
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.
What is Shopify? 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, 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 Inc. (NYSE:SHOP) (TSE:SH) stock has risen by over 60 percent since the start of 2019. The e-commerce platform provider’s share price has been on an upward trend in recent years, as more and more businesses move online. The company’s strong financial performance in recent quarters has also helped to boost its stock price.
Shopify is a platform for businesses of all sizes to create an online store. It offers users a customizable platform, an easy-to-use checkout process, and a wide range of features. One of the features that Shopify offers is the ability to show stock levels on your product pages.
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.
