The Nasdaq sits 32% lower than the peak of late last year. That's not when most people are thinking about investments that can become huge winners. But maybe it should be. Stocks are certainly down for a reason. Quickly rising interest rates, inflation, geopolitical concerns, and continued supply chain disruptions have all soured Wall Street's outlook about the near future. But Wall Street is fickle. And no environment lasts forever -- good or bad.

In all downturns, there are beaten-down companies that will reclaim their glory and see their stock prices soar beyond previous highs. With time, Shopify (NYSE: SHOP) has the potential to be one of them. Diving into the numbers shows how much momentum the company has lost and what it can do to turn things around.

First things first: The stock is down almost 80% so far this year. That's a soul-crushing drop for those who have owned shares. CEO Tobi Lütke explained the reasoning best in a memo to employees about layoffs. The company bet -- by hiring staff and building out infrastructure -- that the pandemic permanently accelerated e-commerce by five to 10 years. It didn't. As things return to normal, management needs to take some of its chips off the table.   

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Source Fool.com