Being able to seek out strong businesses to give a solid foundation to your investment portfolio can be one of the best things you can do as an investor. One good business choice that fits that category is Shopify.
Even though Shopify (NYSE:SHOP) has received a considerable appreciation increase these past years, it could still be a great stock choice, especially over the next decade, as it shows it can bring both stability and growth for long-term investors.
It currently is on a mission of improving e-commerce by offering a wide variety of solutions to help people launch, grow, market, and manage their businesses. Not only can they sell from anywhere, but they can also work almost every modality of their business.
Shopify’s Current Position
So far, it has served over 1.7 million businesses worldwide and has become the second biggest company in the U.S., holding 8.6% of the total market, beating big eCommerce companies like eBay, Walmart, and even Amazon.
Its cumulative gross merchandise volume (GMV) reached $400 billion in the third quarter, and revenue grew 46% year over year to $1.12 billion. Having a big dominance within the market has helped the company produce $615.4 million of free cash flow in the past 12 months while holding over $7.5 billion in cash and securities.
It has expanded said dominance by offering new features, such as building out a fulfillment network to provide logistics and shipping solutions for its users or giving users the ability to promote their products on TikTok and link them directly to their online store checkout.
With all this in mind, we believe that Shopify is a great candidate for your portfolio that you should consider.