Shopify (NASDAQ: SHOP) has achieved a remarkable 3,664% return since going public in 2015, with $178 million in monthly recurring revenue, totaling $2.1 billion annually, as of December 31, 2024.
The company charges a basic monthly subscription fee of $29 and takes a transaction fee of 0.2% to 2% on successful sales, aligning its interests with those of the merchants it serves. Additionally, Shopify’s gross merchandise value (GMV) grew by 26% in 2024, reflecting its ongoing growth.
However, Shopify faces potential challenges, including competition from Amazon and macro risks related to global sellers, such as tariffs that may affect merchant sales. Currently, the stock trades at a price-to-earnings ratio of 110, indicating significant risk if Shopify fails to meet high investor expectations.
