1 Stock Down 24% to Buy Today and Hold Forever

Core Insights - Shopify reported a strong quarter with a 31% year-over-year revenue increase, generating $1.1 billion in operating income and$1.6 billion in free cash flow, indicating a turnaround in profitability [4][8] - Shopify's gross merchandise volume (GMV) reached $94.5 billion in Q4 2024, growing at 26%, while Amazon's online sales grew at about 7%, showcasing Shopify's faster growth rate [2][6] - The company is expanding its services beyond small businesses to target a wider range of clients, positioning itself as a key player in omnichannel retail [5][7] Company Performance - Shopify's revenue growth was driven by strong performance in international and offline revenue, both up 33% year-over-year, and business-to-business GMV, which increased by over 140% [6] - The company serviced 875 million shoppers, with 200 million using Shop Pay services, which grew GMV by 50% year-over-year [6] Market Position - E-commerce sales are projected to increase to 20.3% of total retail sales in 2024 and reach 23% by 2027, positioning Shopify to capture significant market share [7] - Shopify's strategy includes offering a variety of options for businesses of all sizes, making it easy for clients to integrate and utilize its services [5] Challenges and Adjustments - Shopify previously faced challenges due to rapid expansion and investments in logistics, but has since corrected its course and returned to profitability [8] - The company's current valuation is high, with a forward price-to-earnings ratio of 67 and a price-to-sales ratio of 18, which may deter risk-averse investors [9]