In the seven years since Shopify (NYSE: SHOP) Officially released, the business has changed e-commerce practices. It has made the migration to the online world seamless and almost seamless, providing even the smallest businesses with the tools to start, grow, market, and manage retail businesses.

A.D. In 2021 alone, the road was not smooth for shoppers and investors who saw their stock lose 17 percent of its value (although shares are still up 22 percent for the year). But since its inception, the company has been in a lot of trouble.

This means that it has never been a bad time to buy Shopify shares. So let’s see how much you would have spent today if you had the foresight to buy $ 1,000 worth of gold in the e-commerce leader’s first public offering.

Image source: Getty Images

Here’s how Shopify has become a major industry force in six years

Up to $ 29 a month, an underground entrepreneur can be compared to international brands thanks to the shoplifting product. And entrepreneurs have responded.

Supfrey President Harley Finkelstein recently stated: “It took our traders 15 years to earn $ 200 billion in total GMV (gross domestic product), and then doubled to just $ 400 billion in just 16 months.

This is because the Shopify platform is gaining value not only for the small people but also for the big companies. from Heineken And Molson Coors to the General Mills, Logitech, And Craft Heinz, Shopify is becoming a go-to resource for e-commerce as it expands the tools that companies can use.

Shopify has grown since the early days of simply providing online access to a company. Added point of sale capabilities along the way; Payment options; Multi-channel opportunities for sale to businesses Amazon, Facebook, And Pinterest; Small business loan; And even fulfilling an order.

A hanging man "We are open" Log in to the store window.

Image source: Getty Images

The role of e-commerce market order

Although Amazon naturally controls e-commerce with 39% of the market share, surpassing the next 10 big competitors (by margin), Shoffy is actually the second largest e-commerce retailer in the United States. 9%, which puts it ahead of convenience Walmart By 5.8%

Revenue rose 46 percent to $ 1.12 billion in the third quarter, and although Shopify did not provide specific guidance, the fourth quarter is expected to contribute significantly to full-year revenue.

Revenue for business solutions increased by 51% during the period, to $ 787.5 million, and subscription solutions reached $ 336.2 million, up 37 percent year-over-year. GMV was $ 42 billion for the time being, an increase of 35%, but fell below the $ 43.4 billion forecast, indicating a sharp fall in Shopify shares.

Still, Wall Street predicts strong business growth, with analysts expecting more than 40% annual growth over the next five years. Over the past decade, sales have grown from $ 2.9 billion to $ 16 billion.

Someone holds a clipboard while on the phone in a store.

Image source: Getty Images

Half a dozen years ago, investing $ 1,000 in Shopify is now worth it

So what does all this mean for Shopify stock so far? If you invest $ 1,000 on the Shopify IPO, you will receive 5,340% return on your investment of $ 17 (over $ 14 to $ 16 per share) on May 21, 2015. % Of S&P 500 Index created at the same time.

This huge market index is more than 40 times higher, and means that $ 1,000 would be worth around $ 54,500 today. On the other hand, the same amount invested in the Index Fund is about $ 2,240.

There is good reason to believe that Shopify will continue to generate significant revenue for investors. It sees a total market capitalization of $ 153 billion, and has begun to scramble on a highly-profit, high-profit subscription-based model. Adding new offers such as live marketing events, click and collect services, and adding cross-selling channels means there is plenty of room for growth.

This article represents the author’s dissenting opinion on the “Official” decision of the Motley Ful Premium Advisory Service. We are Motoli! Asking for investment opportunities – even our own – can help us all think critically about investing and make decisions that will make us smarter.