The Ultimate Growth Stock to Buy With $1,000 Right Now
- June 6, 2025
- Category:
Key Points
Shopify (NASDAQ: SHOP) has taken its investors on a wild ride in the 10 years since its initial public offering (IPO). The e-commerce services provider went public at a split-adjusted price of $1.70 on May 21, 2015, soared to a record closing price of $169.06 on Nov. 19, 2021, but now trades at about $106.
A $1,000 investment in its IPO would have briefly blossomed to $99,447 at its peak, but would still be worth about $62,350 today. That 62-bagger gain would have easily beaten the S&P 500 's gain of roughly 170% over the past decade.
Let's see why Shopify outperformed the market -- and why it might still be the ultimate growth stock to invest another $1,000 in right now.
Why is Shopify growing so rapidly?
The company's self-service e-commerce platform lets merchants easily set up online shops, process payments, fulfill orders, and manage their marketing campaigns. This one-stop shop lets sellers build their own e-commerce businesses, making it an attractive alternative to joining a crowded third-party marketplace like Amazon .
The company's early growth was fueled by smaller businesses. But it's been attracting larger merchants with Shopify Plus platform, which provides added support for growing businesses, offering more loans through Shopify Capital platform, and unifying all of its scattered merchants with the consumer-facing Shop app. It also tethers its merchants and customers to its Shop Pay platform for digital payments.
Gross merchandise volume (GMV), gross payment volume (GPV), and total revenue skyrocketed in 2020 as the pandemic drove more merchants to expand their digital storefronts. But growth cooled over the following two years as it lapped that spurt and inflationary headwinds throttled consumer spending. Many of its smaller merchants also struggled with Apple 's privacy-focused changes on iOS.
|
Metric |
2020 |
2021 |
2022 |
2023 |
2024 |
|---|---|---|---|---|---|
|
GMV growth |
96% |
47% |
12% |
20% |
24% |
|
GPV growth |
110% |
59% |
24% |
29% |
32% |
|
Revenue growth |
86% |
57% |
21% |
26% |
26% |
Data source: Shopify.
In 2023 and 2024, top-line growth accelerated again. That was driven by a growing number of enterprise clients, including Reebok, Champion, and Warner Music ; overseas expansion; Shop Pay's growth; and the rollout of new AI tools (like Shopify Magic), which helped merchants streamline their operations.