Investing in the stock market can seem intimidating, but experienced investors know that it is worth it. If you allocate your money wisely in the stock market, your portfolio can become one of your biggest assets. Besides achieving financial freedom that helps you enjoy your golden years, it can benefit your future generations.
Imagine inheriting shares of Apple from your grandparents who invested a bit of money in the company during the ‘90s. You would inherit the shares they bought for a few thousand and become an instant millionaire.
While the same won’t be possible by investing in Apple shares right now, there are growth stocks trading on the TSX with similar potential. Apple is the kind of company that has changed the way we live and work. The company is integral to our lives now. In a similar vein, Shopify (TSX:SHOP) might become such a company.
Shopify
Shopify is a name rapidly becoming well-known, at least for anyone who wants to start an online business and needs help setting it up. Shopify is a $279.16 billion market-capitalization giant in the e-commerce space. The company effectively offers a platform that lets merchants of all sizes build their online presence. The setup it offers includes digital storefronts, fulfillment, payment processing, and shipping services.
Headquartered in Ottawa, Shopify has made it a lot easier for merchants to set up their online stores. The company rose to popularity, particularly during the pandemic, when people were forced to stay at home. As the demand for online shopping and e-commerce grew, Shopify came in to make things better for its clients and the end consumers.
Artificial Intelligence integration
When I talked about Shopify having the potential to be a company integral to our daily lives, it was more so due to how it is approaching e-commerce. Artificial intelligence (AI) has advanced at an astounding pace in the space of just a few years. The technology has given rise to AI stocks, which are companies leveraging the technology to improve existing offerings or innovating new ones entirely.
Shopify already had a platform empowering merchants. Now, it has AI-powered tools that make things even better. Its AI-assisted critical automations are improving business for merchants selling through its platform. The company even has an AI assistant that helps consumers get better answers about products that are available through its platform.
Foolish takeaway
Shopify’s innovations, especially those powered by AI, are making big waves. While smaller merchants were the ones to benefit from the platform it offers, big companies are looking to open their Shopify stores to leverage the rising demand. The company has been doing really well over the last few quarters. It even became profitable, with the last eight consecutive quarters seeing sustained operational profits.
It will be a long time before we see whether it has the kind of potential that Apple had back in the day, but Shopify stock can be a good investment for growth-seeking investors. As of this writing, Shopify stock trades for $218.84 per share. Up by 38% year to date, Shopify stock might be heading into another bull rally as the holiday season comes closer.
