Shopify Could Be the Best Growth Stock to Buy With $1,000 in November
Shopify‘s (SHOP +6.94%) stock closed at an all-time high of $179.22 per share on Oct. 12. That marked a 613% gain from its multi-year low of $25.13 per share on Oct. 13, 2022.
As of this writing, it’s pulled back to about $151 per share. However, I believe Shopify is still a great stock to buy with $1,000 (or more) this month for three simple reasons.
Image source: Getty Images.
1. Its business model is resilient
Shopify’s self-service e-commerce platform enables merchants to set up their own online stores, process payments, fulfill orders, and manage their own digital marketing campaigns. That “one-stop shop” is a popular option for sellers who want to build their own online brand and don’t want to join Amazon (AMZN +6.86%) or other third-party marketplaces.
Over the past decade, it expanded its ecosystem to include its Shop Pay digital payments platform, Shopify Capital financing services, Shopify Plus for larger enterprise merchants, and dedicated point-of-sale (POS) systems for brick-and-mortar stores. It unified its merchants on its consumer-facing Shop app, integrated its tools across more social media platforms, expanded internationally, and facilitated more cross-border transactions through Shopify Markets. It’s also using AI-powered search engines and referrals to route more shoppers to its merchants.
SHOP – Shopify
$152.46+$9.89 (+6.94%)
NASDAQ · As of 3:04 PM ET 11/04/26
2. Its growth rates are robust
From 2021 to 2025, Shopify’s revenue grew at a 26% CAGR. It turned profitable in 2023, thanks to the divestment of its capital-intensive logistics business, and its net income increased at a 205% CAGR over the following two years.
From 2025 to 2028, analysts expect Shopify’s revenue and EPS to grow at CAGRs of 28% and 44%, respectively, as it expands its enterprise-facing features to curb its dependence on smaller businesses. It will also roll out more AI tools and agents, and aggressively expand overseas by integrating its platform into more localized payment methods.
3. Its premium valuation is justified
Shopify’s stock might seem pricey at 68 times next year’s earnings. However, its market share gains in enterprise commerce, the expansion of its high-margin Merchant Solutions segment (including Shop Pay, Shopify Capital, and its other value-added services), and its growth potential in the business-to-business (B2B) wholesale market could justify that premium.
Shopify’s stock will likely remain under pressure if inflation stays hot and interest rates remain elevated, but it should attract more attention once those headwinds dissipate. So if you’re looking for a simple way to profit from the e-commerce market’s ongoing expansion, Shopify could be a great place to park $1,000 for the next few years.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.