2 Reasons to Buy Shopify Stock Like There’s No Tomorrow

Shares Shopify (STORE 1.04%)the most popular e-commerce software platform in the US, has grown over 2,000% since it went public in 2015. S&P500in comparison, it increased by only 195% in the same period.

The best news is that Shopify stock could go higher other 2000% in the coming years. If you’re looking for a stock with massive growth, this one is for you.

Shopify has a huge advantage over the competition, and it’s not even close

When it comes to Shopify, there are two key factors to note. The first is the competitive landscape. In this respect, Shopify is undoubtedly the king.

When most people think of e-commerce, these are the companies that come to mind Amazonthat sell products and services online. However, there is another type of e-commerce business, namely platforms that allow it others to create your own digital storefronts. For example, Shopify doesn’t run any of its own stores. Instead, millions of sellers run their stores using the Shopify platform. Small home businesses use Shopify-powered stores, but so do large brands, including Nike, All the birdsand Red Bull.

Let’s assume you want to start selling online. You can list your products on Amazon, but you will have to give the company between 8% and 45% of your sales. Meanwhile, Shopify only takes a small percentage of your sales as a fee, and in return, it provides everything you need to start a successful e-commerce business. This includes website design templates, marketing and analytics tools, inventory management dashboards, payment processing, and more. You won’t have direct reach on a platform like Amazon, but you’ll have more tools, customization options and functionality, and you’ll keep a much larger portion of your sales.

According to data collected by Statista, Shopify has 28% of the e-commerce platform market share in the US. WooCommerce has 18% market share while Wix ranks third with 17%. Meanwhile, total e-commerce spending is rising. In 2019, US e-commerce spending was $540 million. Last year it exceeded one billion dollars. It is expected to reach $1.9 billion by 2029. E-commerce platforms like Shopify are therefore attracting an increasingly larger pool of potential customers. As you’ll see, there’s a good chance that Shopify will not only maintain its current industry leadership position, but also expand it in the years to come.

Artificial intelligence could put these stocks on steroids

The second reason to love Shopify stocks right now is that they are perfectly positioned to benefit from the rise of artificial intelligence (AI). E-commerce platforms like Shopify, WooCommerce, and Wix compete somewhat on price. However, where they compete most is functionality and user experience. Whichever platform makes it more powerful and easier to use wins.

With the largest market share, Shopify has an early advantage. In the coming years, artificial intelligence should further accelerate this advantage. This is because Shopify has the resources to attract the majority of AI developers to its platform. Right now, any developer can add more functionality to the Shopify platform, earning money every time users decide to enable a new tool or service. Developers know that Shopify offers them the largest potential user base to monetize their creations. The company already offers dozens of AI applications and features that users can implement with a few clicks – from chatbots to automatic content creation. As AI begins to take off, expect Shopify to benefit by gaining more share in an already large and growing market.

How big can Shopify get? Following its recent decline, the company is now valued at just $75 billion. For comparison, Amazon is worth about $1.9 trillion. Shopify would grow over 2,000% if it reached the size of Amazon. To be clear, Amazon is a much more diverse and much larger company than Shopify. It will take Shopify years or even decades to reach a market capitalization of $1 trillion, let alone $2 trillion. But it is companies like these that are able to sustain growth long enough to reach such enormous sizes.

The global e-commerce market is clearly large enough to accommodate Shopify 10-20 times its current size. Keep in mind that this core market is still growing at around 10% per year. Much of this growth will go to large, consolidated e-commerce sites like Amazon. However, independent stores like those powered by Shopify will also increasingly benefit from this new market growth. After a 25% decline in share prices over the last 90 days – a decline driven by short-term concerns about quarterly forecasts – now is the perfect time to support a high-quality business with a huge long-term profit growth belt.