SHOP - 2 Reasons to Buy Shopify Stock and 1 Excellent Reason to Wait
2023-10-13 17:15:00 ET
Shopify (NYSE: SHOP) stock has elbowed its way back into Wall Street's good graces this year. It helped that the e-commerce industry returned to growth after declining through most of 2022. But Shopify also made a strategic shift that's likely to boost efficiency while freeing up valuable resources.
Investors have responded to this good news by sending Shopify stock up by over 90% at one point in 2023. Shares have come down since then as fears rose about a recession on the way. But Shopify is still trouncing the wider market so far -- up nearly 60% this year. There are some good reasons for this rally, but investors should also be aware of one major risk in owning this stock.
Shopify isn't alone in reporting faster e-commerce sales trends in recent months. The industry posted rare declines last year after spiking in 2021, but that growth hangover seems to have passed. The company handled $55 billion of transactions through its platform last quarter, up 18% year over year.
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2 Reasons to Buy Shopify Stock, and 1 Excellent Reason to Wait