E-commerce is increasingly becoming a bigger component of consumerism. For many years, companies like Amazon, Etsy, Walmart, and others led the charge in online shopping. However, over the last decade, a small Canadian company called Shopify (NYSE: SHOP) began making inroads in the e-commerce industry. Shopify facilitates payments, shipping information, and other data analytics pertinent to customer demographics for small businesses.
During the peak of the COVID-19 pandemic, Shopify experienced unprecedented growth. As people primarily stayed inside, online shopping boomed as did the creation of side hustles (people monetizing their hobbies from home). As a result, Shopify's financial results rocketed, and the stock price subsequently followed. However, following a stock split in 2022, combined with its business results normalizing, the stock still appears to trade at a rich valuation.
Let's dig in and analyze Shopify's financial results and key performance indicators, and assess if the stock deserves a spot in your portfolio.
Source Fool.com