The ongoing market volatility since the beginning of 2025 has plenty of investors spooked, and the S&P/TSX Composite Index shows that. From the start of the year to April 2, the Canadian benchmark index declined by over 9%, with a particularly steep 11% decline between April 2 and April 8, 2025.
For most, this is not the ideal time to invest in growth stocks. Investing in high-growth stocks is risky enough as it is. Doing that when the market is so volatile might not make sense to most investors. However, contrarian investors with well-balanced portfolios and the stomach to bear potential losses are looking at a potentially excellent opportunity.
Shopify Inc. (TSX:SHOP) has long been a top pick for growth-seeking investors. As of this writing, the stock trades at a 35.4% discount from its 52-week high. Let’s see why some brave investors might consider it a screaming buy for their self-directed investment portfolios.
Shopify stock
Shopify is a $153.5 billion market-cap giant in the global e-commerce space. The Ottawa-headquartered company provides a platform for merchants of all sizes to set up an online presence, from creating their online stores to fulfillment, payment and shipping services. The company became particularly successful during the pandemic.
Social distancing regulations forced people to rely more on online buying, and Shopify made it easier for businesses to set up online stores to meet the soaring demand. The company’s growth rate has normalized significantly in recent years, and it is no longer the largest market-cap stock it once was at its peak. But overall, Shopify stock is a company that is doing really well.
Growth is still on the cards
If you look at the growth chart above, you will see that the stock has declined significantly since its peak in the last five years, but it has been on the rise over the last couple of years, besides the 34.9% dip between February and April 2025. Some investors might question whether it is worth buying at current levels.
Investors with a long-term horizon know better than to let short-term volatility be the only reason guiding investment decisions. When you look past the rapid price changes and see the underlying drivers supporting growth, you will see a company with solid growth potential. The industry is rapidly growing, and the number of merchants seeking a strong online presence will only increase.
Shopify offers one of the industry’s leading platforms, operates in several high-margin segments, and is constantly working to improve the e-commerce experience for its clients. The recent integration of AI-powered features is just one example of the work it is doing to this end.
Foolish takeaway
The company’s operational performance is also a big reason why it can be a worthy growth stock to hold long term. The company brought in $2.8 billion in revenue during the fourth quarter of fiscal 2024, which was a 31% jump from its revenue in the same quarter last year. Its strong earnings growth and the industry’s rise are indicative of the potential of outsized returns.
Shopify stock’s history shows substantial volatility, so it’s important to remember that it might not be an ideal holding for someone who needs short-term gains. It is the kind of investment that might work better if you hold it for the long run.
