Last year was tough on growth stocks, but 2023 has been the complete opposite. Many companies have rocketed higher this year with names such as e-commerce software provider (NYSE: SHOP) leading the charge. The Canadian tech business has seen its shares rise 120% this year. However, after such a brutal 2021 and 2022, the stock is still down 55% from the all-time high it set during the pandemic stock market bubble.

After building such strong momentum this year, let's see if this growth investor favorite can extend its rally in 2024 and beyond.

The key to Shopify's turnaround has been an inflection for its profit margins. After planning a rapid -- and expensive -- expansion into logistics and delivery services for its merchant customers, Shopify finally gave up on that project earlier this year. It also laid off 20% of its employees after hiring too many people during the pandemic bubble period.

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Source Fool.com