Shopify (TSX:SHOP)(NYSE:SHOP) stock is on a strong bull run and has surged about 141% this year. The impressive growth in Shopify stock is due to a sharp rise in demand for its offerings. Now that the Shopify stock has rallied so much, you’re probably wondering if you should sell.
Shopify’s top line has grown at a CAGR (compound annual growth rate) of 67% from 2015 to 2019. Meanwhile, in the most recent quarter, its revenues surged 47% year over year. Investors should note that Shopify’s monthly recurring revenues have grown consistently both on a year over year and sequential basis since 2015. Moreover, its monthly recurring revenues have grown at a CAGR of 50%.
Its partnerships with Walmart and Facebook should further amplify the demand for Shopify’s products. Shopify’s Facebook store helps its merchants to display and promote their products on Facebook easily. Meanwhile, customers have the ease of buying and tracking their orders directly in Messenger chat.
Meanwhile, Shopify’s Walmart partnership will allow its merchants access to Walmart’s millions of customers.
The addition of more sales channels should help Shopify in expanding its merchant base. It should give a push to its high-margin solutions like Shopify Capital and shipping.
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