Shopify (TSX: SHOP) is one of the most recognized e-commerce names on the planet. The company continues to attract attention as one of the must-have growth stocks. This only furthers the case for investors to buy Shopify stock.
Shopify is one of the companies that has gone from niche to tech icon and to market darling and one of the top stocks on the market in a little over a decade. But should investors continue to buy Shopify stock right now?
Yes, and here are three reasons that answer that question.
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Reason #1: Real growth and real profits
Shopify continues to grow. During the third quarter (Q3) of 2025, revenue surged 32% year over year to US$2.8 billion. Similarly, free cash flow margin for the quarter was 18%.
This was the ninth successive quarter of double-digit free cash flow margins.
This is an important point worth noting. It means that Shopify has the capital to continue investing in growth initiatives, whether it’s marketing, AI, or the platform itself, without the need to turn to borrowing or issuing new shares.
Over the trailing 12-month period, Shopify has provided an impressive 23% return. Even better, that trend is likely to continue, meaning there’s still time for prospective investors to buy Shopify.
Not only does this show that there is more growth to come, but also that Shopify has matured beyond the former growth-at-all-costs viewpoint to earning profit.
For investors, this furthers the case to buy Shopify stock now and to hold for the long term.
Reason #2: Global platform expansion and AI
Shopify isn’t just an online storefront anymore. The company has evolved into a wide-ranging commerce platform that powers millions of merchants in nearly every country on the planet.
And Shopify isn’t just catering to smaller businesses that need a website either. Shopify’s clientele includes some of the largest brands in commerce.
The company’s core business includes subscriptions and merchant solutions in addition to payment processing. This means that as those merchants sell more of their products on the Shopify platform, the company earns more from that increased volume.
The value of orders flowing through Shopify’s platform, known as gross merchandising volume (GMV), saw an impressive 32% year-over-year improvement in Q3 2025.
Adding to that is Shopify’s recurring monthly revenue stream from its subscription service. This highlights the sticky customer base appeal of the platform.
Like every other business, Shopify is leaning into AI to fuel growth over the next decade. As AI-powered search and agents continue to grow, AI-driven traffic and orders will only bolster Shopify’s results.
Further strengthening the case to buy Shopify is the company’s international push. Shopify is actively targeting emerging markets, tailoring its platform to match the regulations and preferences for specific locales. This is a unique unlock that could bolster the company’s revenue stream in future.
Reason #3: Market and customer tailwinds
For long-term investors looking to buy Shopify, the company’s momentum and platform strength make the stock compelling.
Unlike other businesses, Shopify benefits from long-term trends that aren’t tied to quarterly reports. The company continues to eat away at traditional brick-and-mortar retail.
Further to this, Shopify represents a beacon for both new small businesses seeking turnkey solutions and larger businesses looking to trim development costs.
Adding to this is Shopify’s ecosystem. That’s everything from themes, payment processing, shipping, financing, and a growing suite of AI-powered tools.
These tools are easy to use, expand functionality, and most importantly, make it difficult for merchants to switch.
In short, Shopify’s platform lets merchants do everything more quickly and often more cheaply. And that’s only going to improve as AI gets more into the platform.
Finally, there’s the emerging moat. Shopify isn’t usually considered a defensive stock. But the company’s growing presence in international markets lends to the idea that a slowdown in one market could be partially offset by growth in other markets and channels.
That’s reason enough for many to buy Shopify stock.
Should you buy Shopify stock?
Shopify is a spectacular pick for any well-diversified portfolio. But the company is not without risk, particularly for new buyers. Shopify’s huge valuation is fueled by expectations.
In my opinion, investors should buy Shopify as a small part of a larger, well-diversified portfolio.
