Shopify's Pandemic Premium Is Gone

Shopify's (NYSE: SHOP) software and services help people and businesses sell things online. When businesses were forced to embrace e-commerce in the early days of the pandemic, Shopify was the path of least resistance and quickly became the default choice.

Revenue soared 86% for Shopify in 2020, and that momentum continued throughout much of 2021. The stock followed suit until recently. Between the start of 2020 and mid-November 2021, Shopify stock more than quadrupled.

Revenue growth was part of the equation, but so was multiple expansion. Shopify was a pricey stock before the pandemic, trading around 30 times annual sales. At its peak, Shopify was trading hands at 60 times annual sales.

Source Fool.com