The stock market can feel like a wild ride sometimes. Lately, there’s been a lot of talk about a possible recession, and that has made some stock prices drop. This has folks wondering if now might be a good time to scoop up shares of companies that could bounce back when things get better. One Canadian company that a lot of people are keeping an eye on is Shopify (TSX:SHOP).
Why Shopify
Shopify stock is a big name in the world of online shopping. It helps all sorts of businesses sell their goods online. Like many other stocks, SHOP has seen its price go up and down. As of writing, you could buy a share of it for about $101. Looking at the company’s recent performance, in the last three months of 2024, it brought in $2.8 billion in revenue, which was a nice jump of 31% compared to the year before.
Furthermore, the money it made per share, after some adjustments, went up by 29% to $0.44! Even with these good numbers, the stock price has faced some pressure because of the general feeling in the market and some worries about how long its growth can last.
Because the market has taken a bit of a tumble lately, some investors are thinking that now might be a chance to buy Shopify stock at a lower price. The company seems to be in good shape overall. Lots of businesses around the world use its platform. Plus, Shopify stock is always coming up with new ideas and expanding into different areas, which could mean more growth down the road.
What to consider
Of course, buying stocks when there’s talk of a recession needs some careful thought. While you could make a good profit if the market recovers, it’s important to really look at how the company is likely to do in the long run and how much risk you’re comfortable with. The current price of Shopify stock might look appealing to those who believe in the company’s future and are okay with some ups and downs in the short term.
It’s also interesting to see that online shopping has held up pretty well even when the economy isn’t doing great. More and more people are buying things online, and this trend could keep benefiting companies like Shopify stock, even if the broader economy faces some challenges.
So, while the recent ups and downs in the market might feel a bit unsettling, they can also create opportunities to invest in good companies at lower prices. With its solid foundation and potential for growth, Shopify stock is definitely one that some folks might want to consider if they’re thinking about buying the dip on companies that could bounce back after a recession.
Bottom line
All considered, Shopify stock certainly seems like one to take advantage of during a market dip, and perhaps even during a recession. The company continues to see its usage climb higher and higher. Even during downturns! And as it continues to expand, investors will likely see a rebound in share price, as soon as this market dip comes to a close.
