If you’re sitting on $25,000 and wondering how to allocate it in a Tax-Free Savings Account (TFSA), it’s worth thinking long term. In the right growth stock, that $25,000 could potentially become $250,000 with time and patience. One of the most promising options on the TSX today is Shopify (TSX:SHOP). While many investors think of Shopify as a U.S. stock, it’s a Canadian tech heavyweight that offers exposure to global growth, e-commerce expansion, and even the effects of a rising Canadian dollar.
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A look back
Shopify has come a long way since its founding in Ottawa. It now powers millions of businesses worldwide, helping merchants sell online, in stores, and across platforms like Instagram. In its most recent earnings report for Q1 2025, Shopify reported revenue of US$2.4 billion, beating expectations of US$2.3 billion. The e-commerce platform also delivered earnings per share of US$0.20, beating forecasts of US$0.17. That kind of steady outperformance matters, especially in tech, where investors are quick to reward or punish based on quarterly numbers.
What’s more important is that Shopify is setting itself up for future growth. Management guided for mid-twenties percentage growth for the second quarter, which exceeds what analysts had expected. That’s a sign the business is still expanding at a strong clip despite the tough macroeconomic environment. Shopify also continues to innovate in artificial intelligence (AI), introducing tools that help merchants build stores, manage inventory, and respond to customers more efficiently. These AI features are not just buzzwords; they’re already being used to improve the customer and merchant experience, which in turn strengthens Shopify’s ecosystem.
Focus on strength
Another major move was Shopify’s decision to divest its logistics arm in 2023. That shift allowed the company to become more focused and streamlined. Instead of stretching itself thin managing warehouses and shipping, Shopify is back to doing what it does best: providing a platform for e-commerce. This move has improved margins and reduced capital expenditures, freeing up resources for innovation and growth.
From an investor’s perspective, the case for Shopify stock is compelling. The stock is not cheap by traditional metrics, but it rarely has been. What matters is that it continues to grow revenue, improve profitability, and expand into new verticals and markets. Analysts expect earnings per share (EPS) to grow by 11% in 2025 and 28% in 2026. That kind of forecast shows there’s room for long-term gains, which is exactly what you want in a TFSA investment.
Considerations
Turning $25,000 into $250,000 isn’t going to happen overnight. But at an average annual return of around 20%, it’s possible in just under 15 years. Shopify stock delivered strong returns over the past decade, with early investors seeing incredible gains. While those early days are behind us, the future still looks bright. With its wide moat, global presence, and sticky customer base, Shopify stock is in a great position to continue rewarding shareholders.
There’s also a potential tailwind from the Canadian dollar. Because Shopify earns a large portion of its revenue in U.S. dollars, a rising loonie can make those earnings worth more in Canadian terms. For Canadian investors, that means holding Shopify in your TFSA could be a smart currency play. If the loonie strengthens, your returns in Canadian dollars could see a boost, especially if you’re buying the Canadian listing on the TSX.
Bottom line
Of course, all investments come with risk. Shopify is a growth stock, which means it can be volatile. There will be quarters when the company doesn’t meet expectations, or when tech stocks fall out of favour. But if you’re willing to hold on through the bumps, the long-term trajectory remains intact. Shopify is still growing. It’s still beating expectations. And it’s still expanding its capabilities with AI and international services.
With $25,000 in a TFSA and a long-term outlook, Shopify could be one of the smartest ways to reach $250,000. It won’t be easy, and it won’t be fast. But with the right stock and enough time, it’s entirely possible. Shopify stock offers the kind of growth story that makes it worth the wait.
