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Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

To identify the 20 Canadian small-cap companies they believe have the best shot at earning investors like you gains of 1,000%+ over the coming years.

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Why Shopify Inc. Is A Smart Investment

One of my favourite companies in the tech sector is Shopify Inc. (TSX:SH)(NYSE:SHOP). Shopify is a cloud-based e-commerce platform that boasts a complete e-commerce store setup that integrates with social media platforms in a fraction of the time that has been traditionally required.

The company has only been public for just over a year, but in that time has grown considerably to become a staple of over 270,000 business storefronts with a massive $14 billion worth of sales passing through the platform in over 150 countries. Impressive.

As if that isn’t reason enough to consider Shopify, here’s a couple more reasons why this really is a smart option to add to your portfolio.

Shopify integrates well into just about any e-commerce model

Shopify has a number of add-ons and plugins that allow a myriad of additional features to be added on to the process. This past spring, Shopify purchased Kit CRM, which is a marketing assistant tool designed to help businesses manage their online presence through a variety of SMS messaging and social media posts.

The addition of Kit CRM into the Shopify family allows merchants to use social platforms to engage in what the company calls “conversational commerce”.

The Kit chatbot, which is the first business oriented chatbot to launch on Facebook’s Messenger launched this month, and is is likely to be a catalyst to attract even more interest and brand awareness to the platform.

Shopify has massive potential

Interest in Shopify’s platform has increased considerably over the past few years, and that’s great news for investors. One key point that that many fail to realize however is that in terms of the ultimate market size, Shopify is only just scratching the surface of what is a truly immense market.

Shopify is primarily focused on the small to medium business sector, with the out-of-box quick setup being one of the key selling points of the platform. Looking beyond this, Shopify does have a higher-end premium offering called Shopify plus, that appeals to larger clients, which the company does have.

Between Shopify’s easy setup, merchant solutions, shopify capital and a myriad of other social media integration options, Shopify has established a solid moat around the e-commerce world for businesses, bridging together what would be multiple separate products from separate vendors, into one complete package.

This is an incredible advantage point to clients from both a reporting and cost standpoint, and given the company’s growth rates over the past few quarters, seems likely to continue.

Shopify is still a good bargain

Shopify currently trades at just below $42. Year-to-date, the stock is up by over 17%, while looking further back over the past 12 months shows that the stock is roughly breaking even. Considering the growth in customer base and popularity that the platform has garnered over the past year, the potential upside to the stock is massive.

In the most recent quarter, the company posted a 95% increase in revenue, 73% increase in recurring revenue, and 82% increase in gross profits. The company is set to report updated quarterly figures in a few weeks, and analysts haven’t been coy about issuing a buy rating on the stock.

In my opinion, Shopify remains a great long-term option for those investors looking for a technology company that has a massive long-term appeal.

Why we're Buying More of This "Wall-Street Darling" Left for Dead!

The savvy team of analysts and advisors inside Stock Advisor Canada, recently issued a "buy" alert on this downgraded stock. After being left for dead by five or more big banks in a five-week span, our team scooped up shares as fast as we could - and are recommending that Stock Advisor Canada members jump on this rare opportunity - immediately. So simply click here to unlock the full details behind this new recommendation and join thousands of others inside of Stock Advisor Canada.

Fool contributor Demetris Afxentiou has no position in any stocks mentioned. The Motley Fool owns shares of Shopify and SHOPIFY INC.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

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