A falling stock price makes most investors nervous. But for long-term Foolish investors, it can sometimes be the exact opposite. When a fundamentally solid stock suddenly becomes cheaper, the real question is not, “Why is it falling?” It is, “Has anything actually changed about the business?”

More often than not, the market reacts to short-term fears while strong companies keep quietly strengthening their outlook behind the scenes. Those disconnects create some of the best buying opportunities you’ll ever see. One Canadian growth stock looks like a perfect example today. Despite trading roughly 32% below its high, the company continues to add merchants, grow revenue at an impressive pace, and invest heavily in technologies that could fuel growth for years.

For investors willing to think beyond the short-term, the recent pullback in this top Canadian stock could end up looking like a gift. Let’s take a closer look.

Why Shopify still looks like a “forever stock”

The Canadian stock that I find really attractive to buy now, despite being down sharply, is Shopify (TSX: SHOP). It remains one of the most important commerce platforms in the world. Its software helps businesses start, run, market, and scale operations across 175 countries. That ecosystem matters because merchants that build around Shopify tend to use more of its tools over time, which could deepen customer relationships and expand revenue opportunities.

Shopify stock currently trades at $173.20 per share with a market cap of about $225 billion. Even after rebounding 34% from its 52-week low, the stock remains down 32% from its 52-week high, making it look like an appealing opportunity for investors who plan to hold it for many years.

Shopify’s growth engine is still running

If you take a closer look at the ongoing trend in Shopify’s financials, we can clearly see that the business continues to execute at a high level. In the first quarter of 2026, Shopify’s revenue climbed 34% year-over-year (YoY) to US$3.2 billion. Its gross merchandise volume (GMV) rose to US$100.7 billion, while gross profit reached US$1.6 billion and operating income came in at US$382 million. At the same time, its free cash flow was a healthy US$476 million.

More importantly, the Canadian e-commerce platform giant’s subscription solutions revenue reached US$750 million, merchant solutions revenue rose to US$2.4 billion, and monthly recurring revenue improved to US$212 million. These solid numbers suggest Shopify is still finding ways to grow across different products and merchant types, even in a tougher backdrop for spending.

Why this pullback may be an opportunity

Another reason Shopify stock looks so attractive at the current market price is its financial flexibility. The company ended the first quarter with cash and cash equivalents of nearly US$1.9 billion, and management still expects second-quarter revenue growth in the high twenties. Interestingly, the Ottawa-headquartered firm also expanded its share repurchase authorization to US$5 billion, a sign that management sees value in Shopify stock after the recent pullback.

Moreover, the company is building tools tied to artificial intelligence (AI), payments, logistics, and merchant productivity, which could further strengthen its competitive position for years to come.

Why I would still buy it for the long haul

While growth stocks can deliver strong long-term returns, I wouldn’t recommend buying any of them without keeping an eye on how the business performs. But if you want a business with global scale, strong cash generation, and plenty of room to expand, Shopify stock looks like a great pick. The recent sell-off hasn’t changed the company’s long-term growth prospects. Instead, it has made this proven growth stock available at a more attractive valuation.

The post 1 Canadian Stock Down 32% to Buy Immediately for Life appeared first on The Motley Fool Canada.

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• 3 TFSA Strategies Used By Wealthy Canadians
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• Shopify Is Spending to Win AI Shopping: Is the Stock Still Worth the Price?

Fool contributor Jitendra Parashar has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

Shopify (TSX: SHOP) went public in May 2015 and has since returned over 4,000% to shareholders in the past decade. It means that an investment of $2,500 in the TSX tech stock soon after it went public would be worth nearly $105,000 today.

Despite these market-thumping gains, Shopify stock trades almost 40% below all-time highs and is currently valued at a market cap of US$123 billion.

Let’s see if Shopify can stage a rebound over the next two years and reclaim its record highs.

Is Shopify a good stock to own?

Shopify is one of the largest e-commerce companies globally and reported revenue of US$8.9 billion in 2024, a 26% year-over-year increase. It has two primary business segments: subscription solutions and merchant solutions.

Subscription solutions revenue grew by 28% to US$2.4 billion in 2024, accounting for 26% of total revenue. This growth is driven by diverse pricing plans that scale with merchant needs, from basic plans for entrepreneurs to Shopify Plus for enterprise-level operations. Shopify’s Monthly Recurring Revenue (MRR) reached US$178 million in December 2024, up 24% year over year, indicating strong merchant retention and platform adoption.

Merchant solutions continued to be the key revenue contributor, accounting for 74% of total sales, and grew by 25% to US$6.5 billion in 2024. This segment generates revenue through Shopify Payments, the company’s integrated payment processing service, as well as other offerings like Shopify Capital, which provides financing to eligible merchants in the U.S., U.K., Canada, and Australia.

Shopify’s platform facilitated US$292.3 billion in Gross Merchandise Volume (GMV) in 2024, a 24% increase from 2023. Shopify serves a diverse merchant base across various retail verticals and geographies, with no single merchant representing more than 5% of total revenue.

Looking forward, Shopify is investing in several strategic areas to drive future growth. These include expanding its merchant base globally, localizing features for specific markets, developing new solutions that extend platform functionality, leveraging emerging technologies like artificial intelligence (through offerings like Shopify Magic and Sidekick), and enhancing its ecosystem of over 16,000 apps.

Shopify explains that building a “100-year company” requires balancing growth with profitability and continues to make strategic investments across multiple time horizons. With notable merchants, including BarkBox, Vuori, SKIMS, and Supreme, choosing Shopify for their commerce needs, the platform continues to demonstrate its appeal to businesses of all sizes seeking reliable, cost-effective, and scalable commerce solutions.

Is SHOP stock undervalued?

Shopify’s growth story is far from over, given its forecast to increase sales from US$8.9 billion in 2024 to US$16 billion in 2027. While its revenue is forecast to grow by 21.6% annually in the next two years, estimated growth for adjusted earnings and free cash flow growth is much higher at 28% and 26%, respectively.

In the last 12 months, Shopify stock has traded at a forward price-to-earnings multiple of 67 times. If the tech stock is priced at 50 times forward earnings, it will trade around US$131 in early 2027, indicating an upside potential of 35% from current levels.

Meanwhile, analysts remain bullish on the TSX stock and expect it to gain 27% over the next 12 months.

The post Where Will Shopify Stock Be in 2 Years? appeared first on The Motley Fool Canada.

More reading

• 2 Stocks to Buy if the Market Pulls Back
• 3 TFSA Strategies Used By Wealthy Canadians
• 3 Ways to Maximize Your TFSA Before Year-End
• 3 TSX Stocks to Watch This Month
• Shopify Is Spending to Win AI Shopping: Is the Stock Still Worth the Price?

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.