Growth stocks are really getting hot again, with the broader tech scene leading the way for stock markets. Again, it’s the mega-cap tech titans that are driving us higher. And though playing a mid-cap stock index may be a great way to play a broadening out of the market in some sort of rotation away from growth and back to value, I’d argue that such a play seems to be off the table as generative artificial intelligence (AI) technologies continue to impress, shock, and awe, more than a whole year since OpenAI’s ChatGPT was put to work by the masses.
It’s a profound technology, to say the least. And not one to be taken lightly, whether you’re a growth investor or a more value-focused one. In this piece, we’ll check out one of the “ultimate” growth stocks that I think investors may wish to check out if they seek a play that’s not priced for perfection. Of course, the firm also stands to benefit from the ascent of various generative AI technologies. So, without further ado, let’s consider a name that may make sense to buy with an extra $1,000 or so.
Shopify
Shopify (TSX:SHOP) is a stock I’ve been incredibly bullish on amid its magnificent rally out of the lows of 2022. Recently, Shopify’s president, Harley Finkelstein, appeared on Mad Money in a brief chat with its host, Jim Cramer. Mr. Finkelstein remarked on the company’s international business and its potential to help the firm grow further.
“International is a massive area of growth for us,” said Finkelstein.
Undoubtedly, the Shopify platform has been cherished by many individual merchants who want to fight back at the heavyweights in the e-commerce scene. In many ways, Shopify has empowered the entrepreneurial spirit, providing easy tools to get people started with their digital storefronts. And with payments and logistics services, Shopify really became one of those sticky ecosystems. As merchants do better (they likely will once the consumer improves), Shopify stands to gain as it looks to do its best to help merchants run their businesses efficiently.
As the company looks to grow globally, I think the sky is the limit for the e-commerce powerhouse. It’s already demonstrated success domestically. As it takes on the world, I think the days of upbeat growth may just be getting started. Indeed, it’s hard not to love Shopify as it makes its comeback.
Indeed, swinging a grand slam home run in other parts of the world is no guarantee. However, I think international merchants stand a lot to gain by joining the Shopify platform. Undoubtedly, once they join, it’s going to be hard to quit as Shopify continues innovating and doing its best to ensure its merchants are on the right side of technological innovation.
The bottom line
Shopify is the ultimate growth stock, and it’s a name that I’ll continue to pound the table on as it looks to turn its business around after one of the worst drawdowns in the firm’s history. The pandemic tailwind days are over. But that doesn’t mean there isn’t a world of growth to be had!
