With the stock of Shopify Inc. (TSX:SHOP)(NYSE:SHOP) currently trading approximately 15% down from its peak two weeks ago, many investors are considering whether getting in at current levels remains a solid long-term strategy.
When considering technology companies with out-of-this-world revenue growth rates and industry-leading performance, the number of stocks to choose from become quite slim. Shopify is considered to be one of only a few pure-play growth tech stocks available on the market today, a company which hopes to cash in on the e-commerce boom which has continued to manifest itself in the valuation explosion of other e-commerce companies such as Amazon.com, Inc. (NASDAQ:AMZN), as well as the valuation implosions of various bricks-and-mortar retailers of late due to shrinking margins and sales declines credited to the e-commerce industry.
With a robust cloud-based multi-channel e-commerce platform suitable for most small to medium-sized businesses, Shopify has done well to cash in on the e-commerce mom-and-pop boom, providing a service which allows for many business to transfer with relative ease to an e-commerce platform. Shopify provides many businesses which a relatively easy and streamlined merchant services platform, tailored to the unique needs of such businesses, allowing businesses which may have fizzled away due to online competition with a means of competing for e-market share.
The world of retail is changing, and it appears only the companies that adapt will remain. Shopify appears to be one of the leading companies in terms of innovation and growth in the booming e-commerce sector, one which is unlikely to see growth rates slow down for some time to come.
Invest wisely, my friends.
