A while back Shopify hit the milestone of there having been more than $100 billion in purchases made in stores built on/by its e-commerce platform. And now more recently Shopify also hit another interesting milestone: its (NYSE: Shop) market valuation became more than $100 billion.
The rise of Shopify’s stock price has been maybe even more impressive than the very impressive growth of its ecommerce platform’s popularity: At the time of writing this on June 25th of 2020 Shopify’s stock is trading at bit over $900/share – one year ago on June 25th of 2019 its shares were trading at less than $300/share. And on June 26th of 2015, a single Shopify stock was valued at around $33,52.
The success of Shopify (see Shopify review) itself and that of its stock can be attributed to many different things. First of all, the overall growth of e-commerce has been and continues to be extremely rapid. Secondly, Shopify probably has the best e-commerce platform on the market and has had it for a long time – this has allowed it to attract lot of customers who provide recurring revenue. And thirdly, Shopify’s business has obviously benefited from the otherwise very unfortunate COVID-19 situation which has both increased the interest in online shopping as well as increased the number of people who are looking to establish a new income stream by launching an online store.
