I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.
E-commerce is a billion-dollar market, and Shopify, as a leading global e-commerce platform, is revolutionizing this market as we speak.
Although Shopify has been suffering a severe loss in stock value over the year, we project that investing in Shopify may still be worth your while.
How to buy shares in Shopify Stock
- Open a stock trading account - We recommend using Webull as it offers free stocks when you sign-up.
- Confirm your payment details - Add your payment method and fund your account.
- Research the stock - Search for the stock by name or ticker symbol - SHOP.
- Decide the amount of shares - Now it is time to decide how many shares you want to buy of Shopify.
- Purchase shares of SHOP - Buy the amount of shares you want with a market order or limit order.
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Webull offers commission-free online stock trading covering full extended hours trading, and real-time market quotes.
Trading Fees: $0
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About Shopify Inc.
In an era where e-commerce is booming, Shopify has gained traction as one of the leading global e-commerce platforms.
According to the Shopify website, merchants can design and build their businesses, all while reaching consumers through a cloud-based platform.
By integrating a combination of tools into the platform, Shopify offers merchants all the tools they might require to develop a successful business.
By paying a monthly fee as low as $29/month, merchants can boost the prospect of in-person and online sales. Coining the phrase “spend less time, get more done”, Shopify incentivizes merchants to focus on what’s important – building their brand - while Shopify takes care of the rest.
This can drastically cut costs for merchants while helping them increase their revenue. Not ready to commit to a monthly fee?
Shopify offers a 14-day free trial for potential merchants who want to test out the platform before committing to the paid service.
To make things even more enticing, users aren’t required to provide credit card info to access the trial. Sounds pretty foolproof to us.
So, who’s spearheading this revolutionary e-commerce platform? Before it was an e-commerce platform, Shopify began as an online store called Snowdevil, created by a former computer programmer, businessman, and current Shopify CEO, Tobias Lütke.
Since its launch as an e-commerce platform in 2006, Shopify has acquired 14 companies, seems to be on the hunt for more, and has continued to increase its revenue.
In fact, in 2021, Shopify increased its revenue by a whopping 57% percent from the previous year, generating a total revenue of 4.6 billion dollars.
Currently, Shopify is used by millions of merchants in 175 countries, with a total of 496 billion dollars worth of sales made through the platform.
Now, although Shopify has experienced undisputed success over the years, its most recent quarterly report has exposed that the company is growing at the slowest rate it has experienced in the last seven years.
Unsurprisingly, this has led to skepticism and nervousness among investors, which, in turn, has had a significantly negative impact on the SHOP stock.
Where does this leave future potential investors? Let’s weigh the pros and cons.
Should I Buy Shopify Stock?
Shopify has experienced a challenging year. The release of the company’s quarterly report has revealed that the shift to post-pandemic consumerism may pose significant challenges to its growth.
What does this mean for investors? Well, for starters, it means that currently, SHOP can be purchased at a discounted value.
Based on Shopify’s remarkable financial achievements over the years, investing in the company’s long-term growth might not be such a bad idea.
Shopify Stock Price Today
Now, if you’re looking to invest in a billion-dollar market, then investing in e-commerce is the way to go. Shopify, specifically, is a good choice for many reasons:
- What goes down, should (hopefully) go up. With SHOP shares trading at a low price, this may be a good opportunity for investors to solidify their interest in the company’s long-term success, at a low cost. Who doesn’t love a good sale?
- Shopify intends to further invest in and expand its fulfillment network—a strategy that is projected to increase revenue. Increased revenue could increase the return on your SHOP investment.
- According to Forbes, e-commerce sales are projected to increase by $2.48 Trillion from 2021 to 2025, on a global scale. As a provider of e-commerce tools largely exhausted by online businesses, you should expect Shopify to reap financial growth from this.
- Although Shopify stocks have decreased in price, it has expanded its customer base to twice the amount since its pre-pandemic stages.
- Shopify is reputable for revolutionizing and innovating the world of e-commerce. Even in light of its recent financial setbacks, Shopify is not anticipated to stop growing any time soon.
Investing in SHOP can offer a promising return, there’s no doubt about it. That being said, like all investments, there is a risk of loss.
Shopify’s notable difficulties this year have led to many questioning whether it can offer a good investment return. Here are some things to consider before investing in SHOP:
- SHOP has been reported to have decreased by over 70% this year.
- Shopify’s revenue is estimated to increase around 30% in 2022—hardly a breakthrough, when compared to the company’s 86% growth in 2020 and 57% growth in 2021.
- Much of Shopify’s success can be attributed to COVID-19 and the removal of many retailers from the physical realm of sale. On the flip side, the return to physical shopping has significantly impacted sales facilitated through the company's platform. This has led to uncertainty about the company's growth in the post-pandemic future.
- Investors are concerned about inflation and rising interest rates. In addition to post-pandemic consumer behaviors, the company is impacted by rising inflation. While high-interest rates increased by the federal reserve may continue to hinder the economy.
- Shopify isn’t the only e-commerce business that has suffered in this post-pandemic stage. Amazon, Etsy, and eBay have all seen a significant decrease in their revenue. Are these simply growing pains? Or is this an indication that the time to invest in e-commerce has come and gone?
The significant decrease in SHOP value this year is alarming, sure. However, once Shopify can navigate the post-pandemic world of e-commerce, we may see another boom in revenue.
We’re not saying that the SHOP stock will increase at the same rate as it did in 2020 and 2021. But we are saying that Shopify has real potential to bounce back in these early stages of its post-pandemic adjustments.
In our humble opinion, the equal decline of other businesses involved in the e-commerce market leads to the assumption that a significant transition is currently occurring.
Growing pains. We suggest that investors take advantage of the discounted stock price and purchase SHOP.
Should you invest $1,000 in Shopify right now?
Before you consider the Shopify, you'll want to hear this.
An award-winning analyst team just revealed what they believe are the 10 best stocks for investors to buy right now... and the Shopify wasn't on the list.
The online investing service they've run for nearly two decades, Motley Fool Stock Advisor, has beaten the stock market by over 4X.* And right now, they think there are 10 stocks that are better buys.