Where Will Shopify Stock Be in 5 Years?

(NYSE: SHOP) stock is expensive right now. Shares of the barely profitable e-commerce outfit trade at 74 times next year's expected earnings. The company's pace of sales growth is slowing down, too, even if only because its past growth has made for tougher comparisons now.

However, this is one of these cases where investors' focus shouldn't be on the here and now of the stock's valuation, but on where Shopify's business will be five years from now. The growth in the cards between now and then should take care of any valuation problems that are giving would-be investors pause.

Shopify is an e-commerce name. It's a crowded arena to be sure, led by Amazon, but with players like Walmart coming on strong in the third-party seller sliver of the market. And don't forget about eBay.

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Source Fool.com