Is Shopify's Business in Trouble?
Tech company Shopify (NYSE: SHOP) has generated fantastic growth over the years. In 2018, its top line was just under $1.1 billion, and last year, it came in at over $4.6 billion. But while revenue has been soaring, so too have expenses. And now that the business's growth is slowing, attention has turned to keeping costs under control, where Shopify has a lot to work to do.
Has the company dug itself into too deep a hole, or is this a good contrarian investment to add to your portfolio today?
There's no doubt Shopify has achieved impressive results over the years providing entrepreneurs and business owners with various tools and services to run an e-commerce store. During the early stages of the pandemic, when people were losing their jobs or scrambling for ways to make some extra money, Shopify offered a way for its customers to profit from a hobby or trade. The pandemic accelerated its growth, but it also led to a surge in expenses, which have been growing at an even faster rate than its top line.
Source Fool.com
