Shopify Inc. (TSX: SHOP)(NYSE:SHOP) has already seen its stock price double so far this year, and over the past 12 months, its value has gone up over 178%. The share price has increased a great deal already, and there may not be much more room for it to go up any further. In the past month the stock has been flat with an increase of barely 1%.
The company recently announced it will be able to integrate with eBay Inc, which will allow Shopify users to sell directly through eBay. This has the potential to add more users to Shopify since it now offers more of a one-stop shop to manage all of a company’s e-commerce in one place without having to manage multiple different platforms.
Shopify still has potential for further gains with this news, but words will need to translate into numbers with strong revenue growth. In its most recent quarter, the company saw a slight revenue decline of 2%. By comparison, the previous quarter increased by over 30%, and the previous two increased by at least 15%. With the eBay agreement, it seems likely that revenues will grow as a result, the only question is, “How long will it take?”
Ivanhoe Mines Ltd. (TSX: IVN) may not be as popular as Shopify, but the company’s stock has increased over 316% in the past 12 months, and has had over 85% returns so far for this calendar year. The company is involved in mineral exploration and development, and a big reason for the significant growth was a result of an independent confirmation of high-grade copper being found in the company’s Kamoa-Kakula project in the Democratic Republic of Congo. Analysts have estimated the net present value of this project to be approximately $986 million after taxes.
With no revenue to grow at this point, Ivanhoe’s stock will be mainly dependent on the progress from the company’s projects in Africa. However, there remains lots of potential, specifically in Kamoa-Kakula, and the stock could still see further upside from here.
Sierra Wireless, Inc. (TSX: SW)(NASDAQ: SWIR) saw its stock soar after its strong Q4 earnings. Since then, the share price has gone up over 50%, and for the year it is up almost 75%. As more companies try to connect devices to the cloud, there will be plenty of growth opportunities in the Internet of Things (IoT) industry. Sierra Wireless also announced last month it will be working with PwC Canada to help companies integrate their offerings using IoT.
However, despite the potential, the company has seen its sales flatten over the past few quarters. Although it showed a year-over-year increase of 13% in Q1, it was down slightly from the previous quarter. Annual growth has also tightened with the most recent fiscal year showing growth of only 1% in sales. By comparison, in 2015 the company’s revenues increased 10%, and in 2014 sales were up 24%.
With Q2 earnings coming up in a few weeks, the results will help dictate which direction the stock will go. If the company is unable to have an improvement in its top line, I would hope at least its bottom line shows progress, which has been in the red for two of the past three quarters.
