SHOP - Shopify's Strategy Is Paying Off: Is the Stock a Buy?
2023-11-09 10:07:00 ET
E-commerce giant Shopify (NYSE: SHOP) surprised investors and analysts earlier this year when it decided to ditch its logistics business even though management had repeatedly emphasized its importance for the company's future. However, the market liked the move, and Shopify's third-quarter financial results explain why.
Let's look into the tech company's latest quarterly update to find out how this move is paying off for Shopify and why the stock remains an excellent option for long-term investors.
Shopify sought to steal a page from Amazon 's playbook by building a comprehensive fulfillment network. The benefits of doing so are straightforward. Offering fast delivery options on thousands of items is a significant selling point for shoppers and can lead to them spending more money (and doing so more often) than they otherwise would.
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Shopify's Strategy Is Paying Off: Is the Stock a Buy?