Is Shopify Stock a Buy in March 2023?

Investors in Shopify (TSX:SHOP) stock have had a rough 2022, but this year may be shaping up to provide different results.

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Last year was certainly a grueling one for the S&P 500 index. That said, stocks trading on the Nasdaq saw an even greater decline, as investors sold off risk assets. For those holding onto long-term growth stocks such as Shopify (TSX:SHOP) stock, this was even more the case.

However, as we’ve turned the page to a new year and are rounding out the first quarter of 2023, things are looking at little brighter for this company and the sector. Let’s dive into whether Shopify stock is a buy in March or if investors should continue to look for other options.

SHOP’s new compensation model is a win 

Shopify is restructuring its compensation model. The Ottawa-based e-commerce company has declared that the compensation model will only have two segregations — managers and crafters, with equal compensation offered to both. 

Shopify has stated that this compensation model will reflect an employee’s contribution to the company regardless of their rank. The company decided to introduce this model after it tested the “total rewards wallet” program among the employees, which allowed them to choose between stock and cash options as their compensation. 

National Bank declares 48% upside 

According to a National Bank analyst, a disciplined approach to capital spending and several growth levers has been the winning combination for Shopify’s growth.

In the meeting that took place between SHOP chief financial officer Jeff Hoffmeister, director of IR Carrie Gillard, and National Bank finance analyst Tse, Tse proposed his reinforced investment thesis on SHOP. He believes that the growing merchant services list of SHOP, which includes Shopify Plus, Shopify Fulfillment Network and Capital and Markets, is on its way to adoption. 

As per Tse’s analysis, SHOP stock has been expanding its market and portfolio considerably and tactfully as per market sentiments. For instance, the recent acquisition of Deliverr by SHOP can aid in the investment that the company needs to make for its Fulfillment Network. 

Tse is anticipating that Shopify’s revenue will grow to $6.67 billion in 2023 from $5.6 billion in 2022. 

Shopify integrating ChatGPT in its system

OpenAI introduced ChatGPT in November last year for public testing and now it’s offering paid subscriptions to businesses. They can now use this chatbot’s ability to enhance the user experience and performance of their products. 

ChatGPT, since its launch, has been a hot topic of discussion and making headlines. Shopify has taken the chance to incorporate AI-based services on its platform and is now integrating this chatbot into its system, which has taken the business world by storm. 

Bottom line

Shopify has been making the headlines owing to its sudden organizational improvements and ups and downs in stock prices. If you are looking for a growth stock to invest in for long-term investment, you can consider Shopify. Analysts are expecting this stock to grow in the upcoming months. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

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