Latest news with #ShopifyMagic
Yahoo
24-04-2025
- Business
- Yahoo
Shopify Stock Below $130: A Potential TFSA Accelerator for Tax-Free Capital Gains
Written by Amy Legate-Wolfe at The Motley Fool Canada It can be tricky navigating the stock market when things feel a bit shaky. However, sometimes, when a strong company's stock price takes a bit of a dip, it can be a chance for investors to grab a good deal, especially if you're holding it inside a Tax-Free Savings Account (TFSA). One Canadian company that fits this bill is Shopify (TSX:SHOP). If its stock price drops to a certain point, it could be a real opportunity for Canadian investors to see some significant tax-free gains down the road. Shopify stock is a big deal in the world of e-commerce. It provides a platform that allows all sorts of businesses, big and small, to create and manage their own online stores. The system is reliable, and it's always coming up with new ideas, which has made it a popular choice for businesses selling online all over the world. In the last three months of 2024, Shopify stock reported some impressive numbers. Its revenue hit US$2.81 billion, which was a whopping 31% increase compared to the same period the year before. The total value of all the goods sold through the platform, which is called gross merchandise volume, or GMV, also jumped by 26% to US$94.46 billion. That's a lot of online shopping happening! Despite these strong results, Shopify's stock price has seen some ups and downs. There have been some worries about profit margins, partly because it's investing in new artificial intelligence (AI) features like 'Shopify Magic.' This has led the company to predict that gross profit will grow at a low-twenties percentage rate in the current quarter. That's still growth, but maybe a little less than what some analysts were hoping for. As of writing, Shopify stock trades at around $128 on the TSX. This was after jumping around 8% as the markets began to rally. This price might look appealing to investors who are thinking long term, especially when you consider that the company has consistently grown its revenue and is grabbing a bigger share of the e-commerce market. It's like getting a chance to buy into a growing business at a potentially good price. Putting your Shopify stock inside a TFSA comes with a nice perk, as any gains you make on that investment, like the stock price going up, won't be taxed when you eventually take the money out, as long as you follow the TFSA rules. This makes a TFSA a smart place to hold investments that you think have good potential for growth, like Shopify stock. It means more of your investment gains stay in your pocket. Shopify stock seems to be setting itself up for more growth in the future by focusing on new ideas and expanding its reach around the world. Its work on improving its platform with AI tools is aimed at giving businesses better ways to manage operations. Plus, international markets are actually growing faster than their North American business, with a particularly strong 33% growth rate in Europe. This shows it's successfully tapping into new markets. Of course, like any investment, buying Shopify stock comes with some risks. However, the company's strong underlying business and its plans for the future suggest it has the potential for the stock to appreciate over the long term. For Canadian investors looking for growth opportunities within their TFSA, taking a look at Shopify stock below $130 could be a smart move. It's all about seeing the potential for future gains from a company that's a leader in a growing industry. The post Shopify Stock Below $130: A Potential TFSA Accelerator for Tax-Free Capital Gains appeared first on The Motley Fool Canada. Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Shopify wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
Forbes
13-04-2025
- Business
- Forbes
Business Tech News: Shopify CEO Says AI First Before Employees
Toronto , Canada - 22 May 2019; Tobias Lütke, CEO, Shopify, (Photo By David Fitzgerald/Sportsfile ... More via Getty Images) Here are five things in business tech news that happened this week and how they affect your business. Did you miss them? Shopify CEO Tobi Lütke has implemented a new hiring policy that prioritizes artificial intelligence (AI) over human hires. In a memo to employees, Lütke stated that teams must demonstrate why their needs cannot be fulfilled using AI before requesting additional resources. This approach reflects Shopify's commitment to integrating AI into its operations, including employee performance reviews. The company has already embraced generative AI tools – such as Shopify Magic and Sidekick – to enhance productivity. However, this shift has also led to significant layoffs in recent years. (Source: The Verge) Why this is important for your business: This strategy seems a little extreme. And it's curious to me that it became public. Is this more of a PR stunt than an actual strategy to impress shareholders and show the world how ahead of the game Shopify is? Making an announcement like this also isn't exactly the best way to attract and retain talent to an organization. As I've written repeatedly, AI will be replacing employees. Big companies are doing this. Other organizations will soon be joining in as the technology becomes more affordable and accurate. But announcing that you're effectively doing this is not only a little premature but also isn't a good look. Lance Whitney of ZDNet wrote about the 'variety of compelling advantages' ChatGPT has to offer. He lists five reasons for why he uses it daily despite the available alternatives. Web Searching: ChatGPT's AI-powered search provides direct answers without distractions. Deep Research: With a paid subscription, ChatGPT can conduct detailed research, saving time by compiling comprehensive reports from online sources. Personalized Chats: The chatbot tailors interactions based on user preferences, enhancing the conversational experience. Prompt Writing Assistance: ChatGPT helps users craft effective prompts for various tasks. Replacing Siri: The AI platform's versatility and capabilities make it a strong contender for replacing traditional virtual assistants like Siri. (Source: ZDNet) Why this is important for your business: He loves ChatGPT and so do I. But I also use other AI platforms – Google Gemini, Microsoft CoPilot and Perplexity - for certain tasks. Every business person should have a subscription to at least one. They're like having an expert assistant at your disposal to help advise and perform certain tasks for you. ChatGPT and its counterparts will soon be as critical a mobile app as your email, text and phone apps. Management software platform Procore has published its "Future State of Construction" report – highlighting how AI, automation, and workforce changes are transforming the construction industry. Key findings touch on AI automation, workforce shifts, mental health, data utilization and emerging activities. (Source: Stock Titan) Why this is important for your business: The report has extremely valuable insights for companies in the construction field. For example, AI and automation technologies are reducing inefficiencies, with 55 percent of leaders expecting automation to disrupt the industry within five years, and that, with 53 percent of workers retiring by 2036, companies are focusing on upskilling programs to attract and retain talent. My best clients are always looking at information available now and using that to drive their future growth. There's plenty of data here that will help owners and managers of construction firms make decisions this year that will impact their companies in the years to come. Bank of America says it has integrated AI across its operations, with over 90 percent of its 213,000 employees using AI tools to enhance productivity and client service. (Source: Bank Automation News) Why this is important for your business: Like many big financial services firms, the bank has leaned into generative AI tools to assist employees, and make its call center more efficient. The bank is also using AI to power over one million interactive simulations annually, aiding employees in client interactions. I recently wrote about how JP Morgan is implementing AI tools across their organization to accomplish many of the same goals. At Shoptalk's Spring 2025 conference in Las Vegas, retail leaders discussed the transformative role of AI in the industry. Highlights include Customer Experience: AI is enhancing customer service and loss prevention, while shoppers are using AI to assist with purchases. Creative Tools: Meta showcased generative AI tools for ad creation, emphasizing the shift from automation to creative AI. Storytelling: Toys R Us used OpenAI's Sora platform to create a branded video, demonstrating how AI can innovate storytelling methods. Human-AI Collaboration: A recurring theme was that humans with AI will outperform those without it, highlighting the importance of integrating AI into workflows. (Source: Retail Dive) Why this is important for your business: More AI use cases, this time in the retail industry. The above business tech news items all have one thing in common this week: they're showing how AI is being used in different industries, from construction and finance to retail and general every day assistance. In 2025 AI is clearly beginning to mature and larger companies that have invested tens of millions of dollars are starting to receive that return on investment. What's important is that many of these technologies – as they're being teste and rolled out by big corporations – will ultimately trickle down to small and mid sized businesses. Each week I round up the five business tech news stories that impact my company and my clients the most and then provide a little insight.
Yahoo
29-03-2025
- Business
- Yahoo
3 Magnificent Growth Stocks to Buy Hand Over Fist With $500
Growth stocks can help you compound your savings many times over. The important thing is to maintain a long-term perspective, because even the best companies will occasionally see their share prices fall. Three contributors believe Shopify (NYSE: SHOP), e.l.f. Beauty (NYSE: ELF), and Coupang (NYSE: CPNG) are demonstrating the qualities of long-term winners. Don't have much money to invest? No problem. You can buy one share of all three stocks for about $200 right now. Here's why these stocks are good buys today, even if you only have $500 to spend on investments this month. That's enough to make a significant difference in the long run. (Shopify): Over 875 million consumers bought something from a Shopify merchant in 2024. Shopify provides all the tools a business needs to open an online storefront. It has a 12% share of the U.S. e-commerce market, and it continues to expand rapidly in international markets. Shopify's strong growth in 2024 indicates it is still far away from reaching its potential. Revenue grew 26% for the year and 31% year over year in the quarter. It delivered robust top-line growth, while also converting 18% of revenue into free cash flow last year. Shopify has used its growing scale and resources to roll out new artificial intelligence (AI) tools like Shopify Magic and Sidekick, which could attract new merchants. Analysts expect Shopify to nearly double its revenue to $16 billion by 2027, implying a compound annual growth rate between 20% to 25%. Shopify will have to fend off competition from Amazon's Buy with Prime, which allows Prime members to buy directly from merchants' stores while benefiting from the fast shipping and customer service they get from Amazon. But Shopify stock is worth buying in light of these possible pitfalls. Shopify's sticky ecosystem of commerce solutions has attracted millions of merchants in over 175 countries. The stock more than doubled over the last five years, and based on current revenue growth estimates, the shares could double again by 2030. Jennifer Saibil (e.l.f. Beauty): E.l.f. Beauty has been down in the dumps for a while, but it's a fast-growing company and has tons of future opportunity. It targets a young consumer and crosses over between the mass and luxury buyer because it resonates with a broad swath of consumers who are looking for its value-driven approach to cosmetics. Since it's easy on the wallet, it can still generate growth when there's economic pressure, and it might draw new business from customers switching down. Revenue increased 31% year over year in the fiscal 2025 third quarter (ended Dec. 31). Gross margin expanded by 0.4 percentage points to 71%, although net income decreased from $27 million to $17 million, due to a number of factors like increased marketing expense and currency fluctuations. It's the top company in the U.S. for color cosmetics by unit share. That increased 23% in 2024 while most of the major mass brands lost market share, and it's the No. 2 company by dollar share. Management noted that it is the only cosmetics brand out of 988 that has gained market share for 24 consecutive quarters. According to Piper Sandler's Taking Stock with Teens survey, it's the favorite teen makeup brand. It's also the most-purchased brand for millennials, Gen Z, and Gen Alpha consumers. There's still plenty of room to grow. Unaided brand awareness increased from 13% in 2020 to 33% in 2024, and that's still well below most of its legacy competitors. High growth and low brand presence is a powerful combination. There are worries that e.l.f. will feel the pressure of new tariffs to China, which isn't an insignificant concern. But if you have long-term ambitions, you can buy on the dip and hold through this period. E.l.f. stock is down a brutal 67% over the past year, but it trades at a cheap 17 times forward one-year earnings. At this price, e.l.f. stock looks like a real bargain for the forward-thinking investor. Jeremy Bowman (Coupang): International stocks are looking more attractive these days as investors look to diversify away from President Donald Trump's trade war and weakening consumer sentiment. Lofty stock prices already sent U.S. stocks into a correction earlier this month, and those trends seem to be heading in the wrong direction. One attractive option for growth stock investors in the international market is Coupang, an e-commerce company focused on South Korea that is delivering solid growth and has adopted an Amazon-like business model. It's expanded from a first-party e-commerce business to a marketplace. It has a Prime-like membership program called Rocket Wow, and it's growing the business through ancillary services like food delivery and video streaming. Revenue in 2024 rose 29% on a currency-neutral basis to $30.3 billion, or 23% excluding its acquisition of Farfetch, the luxury online fashion platform it bought about a year ago. On a non-GAAP (adjusted) basis, Coupang is minimally profitable, but the company is still very much in its growth phase, and it's seeing skyrocketing growth from its "developing offerings" segment, which includes food delivery under Coupang Eats, mobile and online games, and a fintech business. Revenue from that segment jumped 153% on a currency-neutral basis last year. Coupang has had mixed success outside of South Korea. It currently operates in Taiwan but pulled out of Japan as its costs were too high there. Still, South Korea is a large and growing market and Coupang's ability to expand its business beyond e-commerce also bodes well for future growth. If you're looking for a growth stock to help you diversify outside the U.S., Coupang looks like a great choice. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $288,966!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $42,440!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $526,737!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 24, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jennifer Saibil has no position in any of the stocks mentioned. Jeremy Bowman has positions in Amazon and Shopify. John Ballard has positions in Coupang. The Motley Fool has positions in and recommends Amazon, Shopify, and e.l.f. Beauty. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy. 3 Magnificent Growth Stocks to Buy Hand Over Fist With $500 was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
11-03-2025
- Business
- Yahoo
Forget Shopify Stock! 1 Cheaper Canadian Stock With More Growth Potential
Written by Amy Legate-Wolfe at The Motley Fool Canada In the bustling world of Canadian tech stocks, Shopify (TSX:SHOP) often steals the spotlight. With its platform empowering businesses worldwide, Shopify has become synonymous with e-commerce success. However, investors might want to cast their nets wider and consider another gem in the Canadian tech landscape. The tech stock to consider instead is OpenText (TSX:OTEX). Shopify's recent performance has been a mixed bag. In the fourth quarter of 2024, the company reported a 31% increase in revenue, reaching $2.81 billion. Earnings per share (EPS) rose by 29% to $0.44, surpassing analysts' expectations. Gross merchandise volume also saw a healthy uptick, growing 24% to $94.4 billion. Despite these positive figures, Shopify's stock experienced volatility, initially dipping but later closing up by 3.1% to $123.59 after the earnings call. Looking ahead, Shopify projects a mid-20s percentage revenue growth for the first quarter of 2025. However, the tech stock anticipates lower-than-expected free cash flow margins, raising some concerns among investors. This cautious outlook, coupled with increased investments in artificial intelligence (AI)-based tools like Shopify Magic and the AI assistant Sidekick, has led to apprehensions about profit margins. On the other side of the spectrum lies OpenText, a tech stock that might not have the same brand recognition as Shopify but boasts a robust financial track record. In the second quarter of fiscal year 2025, OpenText reported total revenues of $1.335 billion. While this marked a 13.1% decrease year over year, it's essential to note that this decline was influenced by the divestiture of certain assets. Notably, OpenText's cloud revenues, a key growth area, increased by 2.7% to $462 million during the same quarter. The tech stock also achieved a net income of $230 million, a significant jump from $38 million in the previous year. This translated to diluted earnings per share of $0.87, up from $0.14, reflecting a substantial improvement in profitability. OpenText's commitment to returning value to shareholders is evident through its dividend program. The tech stock declared a quarterly cash dividend of $0.2625 per common share recently for investors. This consistent dividend payout underscores OpenText's stable financial position and dedication to shareholder returns. When comparing valuations, OpenText appears more attractively priced. With a trailing price-to-earnings (P/E) ratio of 10.40, it offers a more affordable entry point for investors. In contrast, Shopify's trailing P/E ratio stands at 66.06, indicating a higher valuation. Moreover, OpenText's forward P/E ratio is 7.42, suggesting that the market expects earnings growth in the coming year. Shopify's forward P/E ratio is higher at 91.43, reflecting expectations of continued growth but at a steeper price. In terms of growth potential, OpenText is not resting on its laurels. The tech stock continues to invest in its cloud services and has achieved 16 consecutive quarters of cloud organic growth. This focus on recurring revenue streams positions OpenText well for future expansion. So, while Shopify remains a dominant player in the e-commerce space, its higher valuation and cautious profit outlook may prompt investors to explore alternatives. OpenText, with its solid financials, attractive valuation, and commitment to shareholder returns, presents a compelling case for those seeking a cheaper tech stock with promising growth potential. The post Forget Shopify Stock! 1 Cheaper Canadian Stock With More Growth Potential appeared first on The Motley Fool Canada. Before you buy stock in OpenText, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and OpenText wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,058.57!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*. See the Top Stocks * Returns as of 2/20/25 More reading Best Canadian Stocks to Buy in 2025 Here's Exactly How $15,000 in a TFSA Could Grow Into $200,000 4 Secrets of TFSA Millionaires Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
Yahoo
08-03-2025
- Business
- Yahoo
What's Next for Shopify Stock?
Written by Amy Legate-Wolfe at The Motley Fool Canada Shopify (TSX:SHOP) has long been one of Canada's greatest tech success stories. The Ottawa-based e-commerce giant transformed from a niche platform for small businesses into a global powerhouse, helping merchants of all sizes build online stores and process transactions seamlessly. If you had invested in Shopify years ago, you would have likely seen massive returns, especially during the pandemic when e-commerce boomed. But as with all high-growth stocks, Shopify stock has had its share of ups and downs. Lately, Shopify stock has been on a wild ride. After reaching incredible highs in 2021, the company saw a major pullback as the post-pandemic world settled into a more balanced e-commerce environment. Interest rate hikes, shifting consumer spending habits, and increasing competition all played a role in its recent volatility. Investors have been wondering: is Shopify stock still a top tech stock, or should they be looking elsewhere for growth opportunities? The company's latest earnings report sheds some light on its trajectory. Shopify stock reported a 31% increase in revenue for the fourth quarter of 2024, reaching $2.81 billion. Gross merchandise volume, the total value of goods sold through its platform, also jumped 24% to $94.4 billion. These are impressive numbers that show Shopify is still growing at a strong pace, even in a more challenging environment. However, while earnings per share (EPS) rose 29% to $0.44, it slightly missed analysts' expectations of 43 cents. While not a major miss, it does show that the market remains extremely sensitive to Shopify's profitability, especially as the company continues to invest heavily in its artificial intelligence (AI)-driven tools. The stock market's reaction to Shopify's results has been mixed. As of writing, Shopify stock closed at $106.58, dropping nearly 5% from the previous day. Over the past year, it has seen major swings. This kind of volatility is common for high-growth tech stocks, but it also raises questions about whether Shopify stock can sustain its momentum and deliver long-term returns. One of the biggest factors influencing Shopify's future is its push into AI. The company has rolled out an AI-powered suite called 'Shopify Magic,' designed to help merchants streamline everything from marketing to customer service. AI has become a hot trend in tech, and Shopify stock is banking on it to improve its platform and keep merchants engaged. While this could be a game-changer, it also comes with costs. AI investments are expensive, and some analysts worry that these innovations might not translate into immediate profits. There's also the question of competition. Shopify stock may be the leader in e-commerce solutions, but it isn't the only player in the game. Large companies like Amazon and smaller competitors like Lightspeed Commerce are always looking for ways to attract merchants and shoppers. Shopify stock has an edge with its merchant-friendly platform and strong brand reputation, but staying ahead in this space requires constant innovation and investment. So, is Shopify still a buy? Analysts have mixed opinions. Some remain bullish, pointing to its strong revenue growth and expanding merchant base as signs of a solid long-term investment. Others are more cautious, worrying that high operating costs and potential margin pressures from partnerships with companies like PayPal could weigh on future profitability. While Shopify stock continues to be a dominant force in e-commerce, its stock will likely remain volatile as the company balances growth and profitability. Investors should weigh their risk tolerance and consider whether they want to ride the Shopify wave or look at mid-cap tech stocks that might offer a different kind of opportunity. Either way, Canadian tech still has a lot to offer, and Shopify stock remains one of its most fascinating stories. The post What's Next for Shopify Stock? appeared first on The Motley Fool Canada. Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Shopify wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,058.57!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*. See the Top Stocks * Returns as of 2/20/25 More reading 10 Stocks Every Canadian Should Own in 2024 [PREMIUM PICKS] It's Time to Buy: 1 Canadian Stock That Hasn't Been This Cheap in Years Where to Invest Your $7,000 TFSA Contribution 3 No-Brainer TSX Stocks to Buy With $300 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Amazon, Lightspeed Commerce, and PayPal. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
