Ottawa, ON – Shopify Inc. (NASDAQ: SHOP), the leading e-commerce platform for businesses of all sizes, continued its positive run in the market today. The company’s stock closed the session at 1.56, or 1.37%.
Today’s performance is part of a broader upward trend that has solidified investor confidence in the e-commerce giant. SHOP stock has shown strong recent momentum, rising 7.27% over the past month and 7.84% over the last six months. This sustained growth is a testament to the company’s renewed focus on its core software business and profitability.
The most impressive story is the stock’s performance over the last twelve months. Investors have been rewarded with a spectacular 72.85% gain in one year, marking a powerful rebound and reaffirming the company’s leadership in the digital commerce space. This rally has been fueled by strong merchant growth, the increasing adoption of its high-margin payment solutions (Shopify Payments), and its successful push into the enterprise market with Shopify Plus.
Interestingly, the five-year return stands at a more modest 21.43%. This reflects the stock’s massive run-up during the pandemic e-commerce boom, followed by a significant correction in 2022. The powerful one-year gain demonstrates a successful turnaround and a strategic pivot, including the sale of its logistics business, which has allowed the company to focus on its highly profitable core platform.
As Shopify continues to empower entrepreneurs and large brands alike, its recent performance signals that its growth story is back on track.
Frequently Asked Questions (FAQ) about Shopify Inc. (SHOP)
1. What is the stock ticker for Shopify?
Shopify Inc. trades on the Nasdaq Stock Market under the ticker symbol SHOP.
2. How did Shopify stock perform today?
SHOP stock closed at $115.21, a gain of 1.37%. This continues a recent trend of positive momentum for the company.
3. What does Shopify do?
Shopify is a leading e-commerce company that provides a platform for individuals and businesses to create and run their own online stores. It offers a wide range of tools for website creation, inventory management, payment processing, shipping, and marketing.
4. Why is the one-year return (+72.85%) so much higher than the five-year return (+21.43%)?
This reflects the stock’s extreme volatility. SHOP experienced a massive price surge during the pandemic (2020-2021) as e-commerce boomed. It then crashed significantly in 2022 as that growth normalized and tech stocks sold off. The huge one-year gain represents a strong recovery from those 2022 lows, but the five-year figure is still weighed down by the peak of the bubble.
5. How has SHOP stock performed this year?
The stock has had a solid year, with a year-to-date (YTD) gain of 7.09%.
6. How does Shopify make money?
Shopify has two main revenue streams:
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Subscription Solutions: Monthly fees merchants pay to use the Shopify platform.
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Merchant Solutions: Fees from services like Shopify Payments (transaction processing), Shopify Shipping, and Shopify Capital (business loans). This is its largest and fastest-growing segment.
7. Does Shopify (SHOP) pay a dividend?
No, Shopify is a growth-focused company and does not pay a dividend. It reinvests its profits into developing new products and expanding its platform.
8. Who are Shopify’s main competitors?
Shopify competes with other e-commerce platforms like BigCommerce, Adobe Commerce (formerly Magento), and open-source solutions like WooCommerce. It also competes indirectly with large online marketplaces like Amazon and Etsy.
9. Why did Shopify sell its logistics business?
In 2023, Shopify sold its logistics and fulfillment network to Flexport. This was a major strategic move to divest from a capital-intensive, lower-margin business and refocus on its core, high-margin software platform, a decision that has been well-received by investors.
10. What is Shopify Plus?
Shopify Plus is the company’s enterprise-level offering, designed for large, high-volume businesses. It provides more advanced features, customization, and dedicated support. The growth of Shopify Plus is a key driver for the company.
11. What was the previous closing price for SHOP?
According to the chart data, the previous day’s closing price was $113.65.
12. Is Shopify profitable?
Following its strategic pivot and focus on cost discipline, Shopify has achieved profitability on an adjusted basis, a key milestone that has helped fuel its stock price recovery over the past year.
