Shopify (TSX:SHOP)(NYSE:SHOP) is like the Chanel of stocks these days. Everyone wants it, but practically no one can afford it. Yet whereas a Chanel bag will eventually go out of style, this holiday season, I would continue to keep Shopify on my wish list.
Major challenges fuels changes
The pandemic fueled the growth in Shopify, but it’s been recent problems that have put it on top. Shopify worked hard and fast to become a fully operational, fully independent e-commerce company. Merchants and customers can now buy, sell, ship, and store through Shopify. there are no more worries about third parties at a time when supply-chain disruptions are at a peak.
Shopify, in fact, had majorly good news, making changes to its application just in time for the holiday season. Now you can search not just by merchant, but by product, allowing you to browse similarly to that of Amazon and other e-commerce companies.
But the benefit here is now you know the shop you like, and that allows customers to follow these merchants for new products. And there were a lot of new products that became of interest during this recent Black Friday.
Records set … again
Shopify almost became boring, as it beats earnings report after earnings report. But you can’t deny that the recent Black Friday to Cyber Monday increase was substantial. Sales reached US$6.3 billion globally from start to finish of Black Friday to Cyber Monday. That alone was a 23% increase year over year and more than double 2019 levels.
Furthermore, sales peaked at US$3.1 million per minute, with 47 million consumers purchasing from Shopify. Commerce sales alone nearly tripled year over year, thanks to what Shopify identified as a “seamless checkout experience.”
More earnings on the way
But the holiday season isn’t over. Last-minute shoppers who need their presents quick can look to Shopify for quick turnaround. Not only that, but you can use the application to buy many products and pay zero shipping. That’s without having a membership to pay for, such as Amazon’s Prime.
And with the ability to buy, pay, sell, ship, and track online, everything can be done from your phone. You can even track other products from other companies using the Shopify app, giving consumers another reason to keep it at least available and tempting more purchases.
The holiday season will likely see yet another increase in sales, whereas other companies are remaining unconvinced as to whether they’ll see growth thanks to supply chain disruptions. But Shopify has yet to give any such guidance to a negative earnings report.
Bottom line
If you’re looking for a stocking stuffer, then Shopify should be on your list. Yes, at $1,921 as of writing, shares are expensive. But there’s a reason. And those shares are still down from all-time highs near $2,200. It’s quite likely that Shopify will climb once more to above $2,000 in the new year. So, if you can afford it, buy yourself something nice. Because Shopify stock simply doesn’t go out of style.
