CA - Shopify: Aggressive Expansion Path

2024-03-25 13:20:09 ET

Summary

• Shopify Inc. continues to achieve impressive growth at scale, with $8+ billion in annual revenue and $200+ billion in annual GMV.
• The company has quietly rolled out new AI features that modernize its platform and appeal to new merchants.
• Shopify's higher attach rates, constant innovation, strong clientele, and capital-light business contribute to its long-term growth trajectory.
• Though expensive at ~11x forward revenue, the company continues to address a huge global total addressable market that makes near-term multiples less meaningful.

It's a common thread on investors' minds these days: what can we still invest in that hasn't blown up to overpriced proportions? What stocks aren't just fads and truly have long-term growth trajectories in the works?...

For further details see: