Canada markets closed
  • S&P/TSX

    20,188.43
    +90.91 (+0.45%)
     
  • S&P 500

    4,411.79
    +44.31 (+1.01%)
     
  • DOW

    35,061.55
    +238.20 (+0.68%)
     
  • CAD/USD

    0.7964
    +0.0002 (+0.02%)
     
  • CRUDE OIL

    72.17
    +0.26 (+0.36%)
     
  • BTC-CAD

    42,602.76
    +1,725.15 (+4.22%)
     
  • CMC Crypto 200

    786.33
    -7.40 (-0.93%)
     
  • GOLD FUTURES

    1,802.10
    -3.30 (-0.18%)
     
  • RUSSELL 2000

    2,209.65
    +10.17 (+0.46%)
     
  • 10-Yr Bond

    1.2860
    +0.0210 (+1.66%)
     
  • NASDAQ

    14,836.99
    +152.39 (+1.04%)
     
  • VOLATILITY

    17.20
    -0.49 (-2.77%)
     
  • FTSE

    7,027.58
    +59.28 (+0.85%)
     
  • NIKKEI 225

    27,548.00
    +159.80 (+0.58%)
     
  • CAD/EUR

    0.6759
    -0.0001 (-0.01%)
     

Here’s Yet Another Reason to Load Up on Shopify Stock Right Now

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
online shopping
  • Oops!
    Something went wrong.
    Please try again later.

Long-term technology holdings are among the key focal points of many investors right now. Indeed, ensuring investors have enough growth in their portfolios to at least match the market is important. In this context, investors in Shopify (TSX:SHOP)(NYSE:SHOP) stock have done well of late.

Currently, Shopify is trading near its all-time high. And the company is approaching the $2,000-per-share level rapidly. Indeed, there’s a good probability Shopify stock will breach this mark in short order.

However, before we get ahead of ourselves, let’s take a look at some of the factors investors should consider. Let’s take a look at why Shopify has been soaring, and what might be in store for this growth gem from here.

Investors in Shopify stock also have a stake in Stripe

One of the things I like most about Shopify is the company’s ability to leverage its partnerships over time. Shopify’s management team has done a fantastic job of creating a fully-integrated e-commerce platform. A lot of this has to do with various deals the company has made over the years.

One recent deal which caught my eye was Shopify’s recent investment in Stripe, a private online payment processing platform. This massive $350 million investment gives Shopify a stake in Stripe but also allows the company to further leverage Stripe’s services for its platform. It’s a win-win scenario for both parties.

In fact, I think Shopify shareholders are the biggest winners from this deal. Shopify’s investment in Stripe, from a purely financial perspective, carries a lot of upside. Factor in the integration potential of this deal, and investors can see how big of a deal this partnership could be from a long-term perspective.

Stripe and Shopify have been close partners ever since Shopify Pay was launched. In fact, the payment platform is responsible for more than half of Shopify’s revenue.

However, this deep-rooted partnership just got a lot stronger. And there are tonnes of untapped synergies that could be unleashed as a result of the deal.

Over the years, Shopify has emerged as one of the most active corporate venture capital investors in Canada. It has managed to leave behind Swyft Technologies, a leading software provider based in Toronto. Shopify has also managed to gain speed over Miami’s Pipe Technologies and Vancouver’s Bench Accounting, making it a leading name in this space.

Bottom line

Shopify is a company with a sky-high valuation. But it’s also a company with a sky-high growth rate and is only scraping the surface in terms of its verticals right now.

There are many reasons why long-term growth investors are bullish on Shopify. However, the company’s recent results speak for themselves. Those who believe this growth is sustainable ought to give Shopify a look right now.

The post Here’s Yet Another Reason to Load Up on Shopify Stock Right Now appeared first on The Motley Fool Canada.

Like Shopify? Take a look at these other top picks:

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.

Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

More reading

Fool contributor Chris MacDonald has no position in any stocks mentioned in this article. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

2021

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting