Given its strong sales growth trends, Shopify (NYSE: SHOP) stock might be an excellent deal right now. The e-commerce infrastructure provider is valued less optimistically than it was before the pandemic struck, despite market share gains and an expanding subscription services platform.
The bullish investment thesis depends on that membership revenue pushing profitability higher even as Shopify handles a larger proportion of e-commerce transactions. Let's take a closer look at the prospects for this optimistic scenario playing out.
It's true that Shopify isn't operating at nearly the level that management had hoped it would reach after projecting out sky-high growth rates from earlier phases of the pandemic. The volume of merchandise sold through its platform this past quarter was up just 17% after accounting for currency swings as consumers became less interested in e-commerce.
Source Fool.com