SHOP - Shopify Proves Again It's Still a Top Software Stock to Buy for the Long Haul
2023-11-16 10:12:43 ET
Shopify (NYSE: SHOP) stock is back. Or maybe it never really faded all that much. But with the logistics business now sold off, it's easier to focus on what Shopify has always done best: software for the e-commerce industry.
Of course, not all is perfect, and it's still easy to poke holes in the Shopify investment thesis -- with its current rich valuation among the top concerns. Nevertheless, in an incredibly tough year for retail amid high interest rates and weakening consumer spending, you've got to hand it to the management team. If you're looking for a great investment for the ultra-long term, Shopify still fits the bill. Here's why.
Shopify reported a 25% year-over-year increase in revenue to $1.7 billion in the third quarter. A mix of software to help merchants small and large, digital payments processing, and a myriad of other tools helped fuel the outperformance. Adding to the impressive top-line print for Shopify, giant peers like Amazon are only just beginning to rally as their e-commerce revenue makes a comeback. Smaller operations like Etsy struggled as consumers tightened up their spending as the year progressed.
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Shopify Proves Again It's Still a Top Software Stock to Buy for the Long Haul