E-commerce was already taking off before it got a tailwind from the coronavirus pandemic, which has driven more people and merchants online than ever. Shopify (NYSE:SHOP) has been a big beneficiary thanks to its platform, which enables merchants of all sizes to set up online stores, manage inventory, track payments, and run ads.
Shopify knocked it out of the park in the third quarter, reporting record gross merchandise volume, revenue, and operating income. A record number of merchants also became paid Shopify subscribers during the quarter, signaling the platform's stickiness, which is crucial for an e-commerce company.
Shopify also expanded its social media offerings by launching its TikTok channel for merchants to market their products on the rapidly growing social media app. In Q2, Shopify joined forces with Walmart and enabled merchants to customize storefronts within Facebook and Instagram.
Shopify's war chest -- it held $6.12 billion in cash, cash equivalents, and marketable securities as of Sept. 30, 2020 -- provides plenty of room to innovate and pursue growth opportunities within a massive addressable market. It's a compelling growth stock to consider.
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