Shopify (NYSE: SHOP), with its fast-growing e-commerce platform, has been a popular stock among tech sector investors over the past couple of years. The company experienced phenomenal growth over the past year as enormous numbers of brick-and-mortar businesses shifted their focus to online sales during the pandemic. But now, some investors are wondering whether its fantastic run has come to an end.
To figure out whether or not Shopify is still a great tech stock to buy, let's consider the company's e-commerce opportunity.
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The e-commerce revolution is far from over
There's no denying that the pandemic led to the accelerated adoption of e-commerce among both merchants and consumers. And Shopify's management acknowledges that as more people go back to doing more of their shopping in person in 2021, the pace of e-commerce growth will slow down.
But don't make the mistake of thinking that the company's growth will completely stop. Shopify's management said in the company's fourth-quarter earnings call that they anticipate merchants will still join the company's platform this year in a number “higher than any year prior to 2020.“