In the world of e-commerce, Amazon isn’t the only business generating serious returns for its shareholders.
Investors might believe that the world of online retail is dominated only by Amazon. But there are other businesses that are finding remarkable success in the market. Shopify (SHOP -7.85%) deserves some attention, as it provides a vast ecosystem of products and services that help companies start and grow.
The business has definitely taken investors on a volatile journey. But disciplined shareholders who have been able to stay the course are reaping huge rewards. Had you invested $1,000 in this top e-commerce stock three years ago, here’s how much you’d have today.
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Shopify shares are close to their all-time high
This stock is back to its winning ways. In the past three years, shares have skyrocketed 499% (as of Oct. 9). This monster gain would’ve grown a $1,000 starting capital outlay into almost $6,000 in just 36 months.
Shopify’s all-time high of $169.06 was reached in November 2021. The stock is less than 4% off that peak right now.
Improving fundamentals have boosted the stock price
Shopify processed $87.8 billion in gross merchandise sales in the second quarter (ended June 30), a whopping 87% more than in the same period of 2022. As a result, revenue has soared. Shopify is constantly innovating, too, most notably with artificial intelligence features that further benefit its customers.
Shares no longer look like a bargain, though, as they trade for 84 times trailing earnings.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Shopify. The Motley Fool has a disclosure policy.
