1 Stock Down 24% to Buy Today and Hold Forever
It's been a busy earnings season, and artificial intelligence (AI) isn't the only thing on the market's mind. Shopify (NYSE: SHOP) reported a blowout quarter, and it reinforced the idea that there is so much opportunity ahead. Shopify stock jumped on the news, and it's up 20% so far this year, but it's still 24% off its all-time high. Let's see why this stock could still add value to your portfolio.Amazon is the undisputed leader of U.S. retail e-commerce, but if you add up all of Shopify's merchants together, they give Amazon a run for its money. In the 2024 fourth quarter, it processed $94.5 billion in gross merchandise volume (GMV), versus $123 billion for Amazon's online stores and third-party sales. It's not anywhere near catching it, but it's growing much faster -- 26% for Shopify's GMV, versus about 7% for Amazon's online sales and 9% for third-party sales.Shopify doesn't actually sell any retail merchandise, but it powers the small and increasingly large merchants that use its services and processes a growing amount of volume. Although it's known for its subscription services, or the full and partial packages it offers its clients to get online and selling, it makes much more of its revenue from payment processing. As it onboards new clients for more services, it's increasing revenue streams and developing into a blockbuster e-commerce player.Continue reading
It's been a busy earnings season, and artificial intelligence (AI) isn't the only thing on the market's mind. Shopify (NYSE: SHOP) reported a blowout quarter, and it reinforced the idea that there is so much opportunity ahead. Shopify stock jumped on the news, and it's up 20% so far this year, but it's still 24% off its all-time high. Let's see why this stock could still add value to your portfolio.
Amazon is the undisputed leader of U.S. retail e-commerce, but if you add up all of Shopify's merchants together, they give Amazon a run for its money. In the 2024 fourth quarter, it processed $94.5 billion in gross merchandise volume (GMV), versus $123 billion for Amazon's online stores and third-party sales. It's not anywhere near catching it, but it's growing much faster -- 26% for Shopify's GMV, versus about 7% for Amazon's online sales and 9% for third-party sales.
Shopify doesn't actually sell any retail merchandise, but it powers the small and increasingly large merchants that use its services and processes a growing amount of volume. Although it's known for its subscription services, or the full and partial packages it offers its clients to get online and selling, it makes much more of its revenue from payment processing. As it onboards new clients for more services, it's increasing revenue streams and developing into a blockbuster e-commerce player.
