The Canadian equity market has continued its climb in 2025, buoyed by a resilient economy and a series of interest rate cuts that have renewed investor confidence. This optimism has fueled a broad rally across top Canadian stocks, helping the market sustain its upward momentum.
While many stocks witnessed a solid recovery, a few still look top long-term bets given their solid growth trajectory. Thus, any pullback in those stocks is a buying opportunity for investors with a longer time frame. On such stock is Shopify (TSX:SHOP).
Shopify stock has gained about 22% in three months. However, it still trades about 14% below its 52-week high of $183.53, presenting a buying opportunity for long-term investors. Shopify is poised to benefit from significant long-term tailwinds from the rapid shift in selling models towards omnichannel commerce.
Shopify continues to deliver robust financials, strengthening its position as a leader in the e-commerce space. Given its growth potential and proven resilience, Shopify remains a “hold forever” stock.
Despite a challenging global economic backdrop, Shopify is proving the resilience of its business model by consistently delivering strong financial performances. The Canadian tech giant started 2025 on a high note, delivering another impressive quarter that reflects the strength and scalability of its business model.
In the first quarter (Q1) of 2025, Shopify achieved its eighth consecutive quarter of +25% revenue growth and seventh straight quarter of +20% growth in gross merchandise volume (GMV). The e-commerce platform provider maintained double-digit cash flow margins for the seventh quarter in a row, highlighting its ability to grow efficiently and profitably.
In the first quarter, Shopify’s GMV reached $74.8 billion, up 23% year over year. This growth came from its existing merchants, who saw healthy same-store sales increases. Moreover, the expansion of its merchant base supported its growth.
Revenue for the quarter rose 27%, reflecting strength in both GMV and greater adoption of Shopify Payments. Payment penetration hit 64% during the quarter, a notable increase powered by strong uptake among high-volume merchants, especially those on Shopify Plus. More merchants are now choosing Shopify’s payment solution, and the company is steadily expanding its payments footprint across geographies and through strategic partnerships.
All told, Shopify continues to deliver solid growth. Moreover, operational efficiency and expanding merchant base suggest it remains well-positioned to thrive even amid market volatility.
Shopify is one of the most attractive stocks in the omnichannel commerce infrastructure space. With a growing global merchant base, innovative products, and a sharp focus on profitable expansion, Shopify appears well on track to deliver outsized returns for long-term investors.
Shopify’s GMV remains solid, driven by the existing merchants and its ability to steadily onboard new merchants worldwide. The same-store sales momentum from long-time Shopify users continues to provide a reliable foundation, while new merchants and global market penetration provide incremental growth.
Shopify has also diversified its commerce ecosystem. Its offline retail solutions have gained impressive traction, attracting a wider variety of merchants, ranging from small businesses to large retailers. As the platform evolves, Shopify is becoming the commerce backbone for major players across industries.
The company is also expanding its capital solutions for merchants, recently introducing a suite of tools that offer greater flexibility in how merchants access and manage funding. These innovations are giving businesses more autonomy and better financial options, which in turn encourage longer-term engagement with Shopify’s ecosystem.
Operationally, Shopify maintains disciplined control over expenses and is driving meaningful operating leverage. At the same time, it’s accelerating product development by its strategic use of artificial intelligence technologies.
Shopify is prioritizing investment in its core platform and key growth areas such as international markets, business-to-business (B2B) services, enterprise clients, and offline retail, supporting its long-term growth.
The post This Stock Down 14% Is My Hold-Forever Investment appeared first on The Motley Fool Canada.
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Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.
