The Canadian equity market has trended higher in 2025 despite macro uncertainty. This uptrend is powered by the resilience shown by the economy and a series of interest rate cuts that have boosted investor sentiment. This renewed confidence has sparked a broad rally across some of the top Canadian stocks, keeping the TSX’s upward momentum intact.
While many stocks have already delivered impressive returns, there are still opportunities that stand out as compelling long-term plays, implying buying them today can set you up for life. Among them, Shopify (TSX:SHOP) remains a name that could help investors build lasting wealth.
Shopify has been nothing short of a market star, delivering a staggering 134% gain over the past year. The e-commerce powerhouse has not only clawed back most of the ground it lost after the pandemic but has also soared over 290% in the last three years. Today, its shares are trading just shy of their all-time high of $222.87.
While such a rally has naturally lifted the company’s valuation, the long-term story remains compelling. Shopify’s unified commerce platform continues to gain traction among merchants of all sizes, with larger retailers increasingly signing on. The commerce platform provider is rolling out innovative tools and features that keep it ahead of the competition. Meanwhile, it is focusing on operational efficiency and sustainable, profitable growth.
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Shopify maintains a robust growth trajectory
Shopify is growing fast with no signs of a slowdown, and that could mean solid returns for long-term investors. In the second quarter, the Canadian tech giant posted $88 billion in gross merchandise volume (GMV), a 31% year-over-year jump. Growth was robust in North America, with notable gains among Plus merchants, and Europe, where GMV surged 49%. The gains came from both new merchant sign-ups and increased sales from existing merchants, with same-store sales playing a key role this quarter.
Offline GMV also impressed, climbing 29% as larger retailers joined the platform, while business-to-business (B2B) GMV more than doubled, up 101%, reflecting the strength of Shopify’s unified commerce approach. This momentum is being driven by the company’s expanding product suite, which is attracting a broader range of businesses and driving growth across diverse categories.
Revenue rose 31%, mirroring GMV gains, and Shopify Payments penetration hit 64%, thanks to wider adoption, strong merchant performance, and expansion into more markets. Its capital business is also on the rise, with new credit offerings and a broader international footprint.
Crucially, Shopify is pairing its top-line growth with operational discipline. Cost efficiencies have produced 11 straight quarters of positive free cash flow, eight in double digits. Moreover, its continued investment in areas like its core platform, enterprise solutions, artificial intelligence (AI), and international expansion provides a platform for solid long-term growth.
Despite macroeconomic uncertainties and tariff shifts, Shopify’s merchants remain resilient. Management sees this momentum carrying into the third quarter, with merchant trends stable and GMV strength continuing.
Shopify stock is a compelling long-term investment
Shopify’s growth story is far from over. Its ability to capture market share across multiple retail channels, innovative products, sustainable earnings, and free cash flow position it well to deliver significant returns. While short-term market swings and broader economic uncertainties may cause temporary bumps, Shopify’s fundamentals remain solid. This implies that investment in Shopify stock, even at today’s price, could pay off for a lifetime.
