Shopify (TSX: SHOP) (NYSE: SHOP) has had an incredible year. In May, the company became the largest company in Canada when its market capitalization exceeded that of Royal Bank of Canada. In fact, it had been a movement of years in the making, as Shopify’s performance over the last three years completely blew up all other Canadian businesses.
Earlier this year, the TSX announced that the e-commerce company ranked number one on the TSX30. This indicates that Shopify stock has been the best performer over the past three years (+ 1.043%). His next closest peer was Ballard Power Systems, which posted a gain of 459% over this period. Indeed, Shopify stock has been scorching since its IPO. Does this stock still have room to develop? In this article, I explain why Shopify stock is the one you need to own in 2021.
This company could be Canada’s first trillion dollar company
Currently, there are only four North American stocks that are part of the $ 1 trillion club; all were established in the United States: Alphabet, Amazon, Apple, and Microsoft. To become a stock of this size, companies must be at the head of an emerging and important industry for many years. For example, Apple became one of the early leaders in the field of smartphones, and Amazon is the clear leader among online shopping companies.
Shopify advocates for its ability to lead businesses that operate in the online store building space. Among English speaking countries, no other online store website provider is used more than Shopify. Currently, it claims over 1,000,000 traders as customers. Even more impressively, the company has listed mega-companies as PepsiCo, You’re here, and Kraft Heinz as customers.
Shopify’s main source of revenue comes from its subscription fees and the fees it charges merchants per transaction. Therefore, as e-commerce and online shopping continue to gain more and more adoption around the world, Shopify should reap the benefits of this big trend. Over the Black Friday-Cyber Monday weekend, Shopify announced that its merchants sold a total of $ 5.1 billion globally. This number breaks every Black Friday-Cyber Monday weekend in history.
What’s even more impressive is that countries like Canada have reported that online sales currently only account for around 11% of all retail sales. Given that regions like Africa have less than 1% online penetration, the story of the growth is clear.
Take away idea
Shopify is the clear leader among online store building companies. This leadership position was reflected in its share price, which would have gained 1043% upon the announcement of this year’s TSX30 listing. If Shopify is able to maintain its leadership position over the next few years, it could very well become Canada’s number one trillion dollar company. With its current market capitalization of around $ 180 billion, the company presents a very interesting investment proposition.
Shopify is one of the top positions in my portfolio. The above reasons make it clear that every Canadian investor should consider doing the same.
More interested in finding the next Shopify? Take a look at this today …
This tiny TSX stock could be the next Shopify
A little-known Canadian IPO has doubled in value in just a few months, and famous Canadian stock picker Iain Butler sees a potential millionaire in the wait …
Because he thinks this fast-growing business looks a lot like Shopify, a stock officially recommended by Iain 3 years ago – before it skyrocketed 1211%!
Iain and his team have just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of the board of directors of The Motley Fool. Suzanne Frey, an executive at Alphabet, is a member of the board of directors of The Motley Fool. Teresa Kersten, employee of LinkedIn, a Microsoft subsidiary, is a member of the board of directors of The Motley Fool. Silly contributor Jed Lloren owns shares in Apple, Microsoft, Shopify, and Tesla. David Gardner owns shares of Alphabet (A shares), Alphabet (C shares), Amazon, Apple and Tesla. Tom Gardner owns Alphabet (A-shares), Alphabet (C-shares), Shopify and Tesla shares. The Motley Fool owns shares and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, Shopify, Shopify and Tesla and recommends the following options: long January 2022 calls for $ 1,920 on Amazon and short January 2022 $ 1940 calls to Amazon.