There is no greater growth story on the Toronto Stock Exchange (TSX) right now, perhaps, than Shopify Inc. (TSX:SHOP)(NYSE:SHOP). This provider of online website hosting/creation services and online store products for small- and medium-sized businesses continues to grow at rates which beat the company’s own aggressive targets each and every quarter.
Shopify’s stock price has gone up more than 200% since the same time last year, and gone up approximately 20-fold over the past five years.
This sort of stock price appreciation and valuation multiple expansion is certainly not par for the course. Many wonder just how high Shopify’s stock price could go. With the company absolutely taking over the sector and chewing up massive market share, the runway doesn’t seem to have an end right now.
It seems as though the overall market sentiment with Shopify is to stick with the company until it makes a mistake or disappoints investors at earnings time, something the company has not yet done since its Initial Public Offering (IPO) which is very impressive. This is one of those stocks that has simply been too rich for my blood for way too long, and is an area which I don’t’ fully understand how this valuation was reached, making Shopify a company I won’t personally touch right now. But for those investors looking for a thrill, this company could be for you!
Invest wisely, my friends.
