Some investments are built for income, and others are built for stability. Shopify (TSX:SHOP) is a Canadian stock that’s built for growth.
In fact, over the past decade, Shopify was one of the best-performing growth stocks on the market. But that continued performance depends on investors believing Shopify can continue growing. Those prolonged high expectations can cause the market to look past what’s otherwise a solid quarter.
That may be what’s happening with this Canadian stock. As of the time of writing, Shopify trades down 25% year-to-date, despite the business continuing to expand.
For long-term investors looking for that Canadian stock to own, the current pullback could be an opportunity.
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Shopify is down, but the business keeps growing
When a stock price drops 25%, it can make investors nervous. That uncertainty can be caused by a variety of factors, such as the global uncertainty we’ve seen this year.
In the case of Shopify, it’s a mix.
The company is growing at an impressive pace. In the first quarter of 2026, Shopify reported year-over-year revenue growth of 34%. Gross merchandise volume topped US$100 billion, and free cash flow margin was 15%.
That doesn’t exactly scream a broken business that’s trading down 25% year-to-date.
So, then what’s wrong with Shopify?
The issue is that Shopify is priced like a company expected to keep delivering strong growth. This makes it sensitive to anything that hints at a slowdown. That includes margin pressure, a more difficult spending environment, and global uncertainty.
And there’s been plenty of that this year.
The good news is that Shopify remains a great long-term pick, and this pullback should be viewed as an opportunity for investors.
Why Shopify is a rare Canadian stock for growth investors
Canada has plenty of strong dividend stocks, bank stocks, utility stocks, energy stocks, and telecoms. But Shopify is different. It’s one of the few Canadian companies with a global technology platform.
At its core, Shopify gives merchants tools to quickly build an online storefront. Over the years, this Canadian stock has expanded its tools to include a suite of bolt-ons that add additional functionality.
That includes everything from order fulfillment tracking and payments to analytics, social media tools, and customer support.
In short, Shopify gives merchants the tools to sell across different channels.
And despite the common stereotype, Shopify is no longer just a tool for small online stores. The company has expanded deeper into larger merchants, enterprise customers, international markets, and artificial intelligence tools. This gives Shopify multiple growth paths beyond its original e-commerce base.
As more businesses join the platform, the revenue base expands. That gives Shopify more than one way to grow from the same merchant relationship. When those merchants use Shopify Payments or other solutions, Shopify earns a cut from each customer.
Then there’s enterprise, where larger merchants can bring greater volume and deeper relationships.
This makes Shopify much more than just another e-commerce stock. And it doesn’t sound like a Canadian stock that should be down 25% this year.
Is Shopify stock a buy today?
Shopify does hold long-term potential for investors, but this isn’t a Canadian stock for every investor. The company is growth-focused, meaning that there’s no dividend.
Shopify is also more volatile than other stocks. A broader market slowdown or instability could drag the stock down as well.
But for growth-focused investors, Shopify remains one of Canada’s most attractive long-term businesses. The stock is down, but the company continues to grow revenue, process massive merchant volume, and generate cash flow.
For investors who can handle volatility, that makes this Canadian stock a worthy addition to a well-diversified growth portfolio.
