As the year comes to a close, trading activities are subsiding with only a few stocks like Shopify Inc. (NYSE:SHOP) still rising to glory. For those investors eyeing the end-of-year gains, investing in Shopify stock is a good way to start a new year. From a lucrative share price of $387.95 to strong growth prospects, you have every reason to buy Shopify Inc. (NYSE:SHOP) and hold it in the long-term.
Here’s why you should include Shopify Inc. (NYSE:SHOP) in your buy list.
Strong Earning Results
The third-quarter earnings results of Shopify Inc. (NYSE:SHOP) indicates a strong revenue growth, a reason to pay attention to the stock. In the third quarter, the e-commerce giant realized revenue of $390.60 million, representing year-over-year revenue growth of more than 45%. The $390.6 revenue surpassed the consensus estimate of $377 million, showing that the company is beating analysts’ expectations in its overall performance.
The $390.60 figure consisted of $225 million of merchant solutions revenue and $165.6 million of subscription solutions revenue, both of which grew by 50% and 37% year-over-year respectively. Now, with the growing number of merchant subscriptions, the company looks forward to more robust revenue growth in the coming years, the more reason you should stick around.
Shopify Inc. (NYSE:SHOP) isn’t going to settle for less. Just like in the previous years, the company is already putting some measures in place to increase its revenue, and, consequently, boost its profitability.
The company is planning to increase the number of its international merchants, which currently account for 19% of its total merchants. To achieve this, Shopify Inc. is working on translating its blogs to foreign languages to attract new customers from other locales. Again, the company is working on expanding its Shopify Pay option internationally to simplify the payment process. If all these plans go through, the company expects a boost in its revenues, which will see it outperform the market.
Shopify Inc. is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario. The company offers online retailers a suite of services including payments, marketing, shipping, and customer engagement tools to simplify the process of running an online store for small merchants. As of December 2018, the company had more than a million businesses across 175 countries worldwide. Currently, the company is valued at $46 Billion.