From Nasdaq: 2025-02-08 09:40:00

Shopify (NYSE: SHOP) is a major player in the U.S. e-commerce market, with a significant share of the industry. Despite not being a top e-commerce retailer, its gross merchandise volume (GMV) has rivaled Amazon’s in certain quarters. Shopify caters to millions of merchant clients and offers e-commerce platform services, positioning itself as a leader in the sector. The company is set to release its year-end 2024 results on Feb. 11, prompting investors to consider buying Shopify stock. With a growing e-commerce market and strong past performance, Shopify remains a compelling investment option.

In the third quarter, Shopify saw a 26% increase in revenue year over year and generated $421 million in free cash flow. The company is expecting mid-to-high-20s percent revenue growth for the fourth quarter, with positive operating expenses and stock-based compensation. Despite a premium valuation, Shopify’s forward price-to-earnings ratio of 61 reflects high expectations for the company’s future performance. Investors should focus on the long-term potential of Shopify and not be swayed by short-term market fluctuations.

As e-commerce continues to thrive, Shopify stands out as a key player in the industry. With its upcoming earnings report on Feb. 11, investors are eager to see how the company performs. While Shopify may be sensitive to negative news due to its premium valuation, long-term investors can benefit from the company’s growth opportunities. The Motley Fool Stock Advisor team has identified Shopify as a strong investment choice, emphasizing the potential for significant returns in the future.



Read more at Nasdaq: Should You Buy Shopify Stock Before Feb. 11?