Shopify
SHOP.TO (TSX)
Shopify, Canada's largest tech company with a market cap of $152.95 billion, has delivered impressive long-term returns exceeding 4,400% since its 2015 IPO. Recently, the stock has shown a 21.04% return over the past year, supported by a strategic shift back to an asset-light model after divesting its logistics business. Analysts have mixed views, with Scotiabank upgrading its rating to Sector Outperform, while Wolfe Research downgraded it to Peer Perform, suggesting varying expectations on future performance.
Pros:
- Exceptional long-term returns since IPO
- Largest tech company by market cap in Canada
Cons:
- Recent negative performance
- High volatility indicated by beta of 2.84
Shopify (SHOP.TO) may be suitable for growth-oriented investors seeking exposure to the e-commerce sector, particularly those who can tolerate volatility and are interested in a company with a strong historical performance and ongoing strategic adjustments. However, potential investors should consider the mixed analyst ratings and the absence of dividends, which may not align with the preferences of income-focused investors.