Should You Buy Shopify After It’s Down 45%?

Over the past quarter, Shopify fell over 45% off its all-time high and about 33% in 2022 alone. However, its dominance in the e-commerce industry is pretty much the same.

Shopify is still a leading platform for small- and medium-sized businesses, and this behavior is expected to continue.

Considering the stock market’s current behavior, it’s an excellent time to buy some shares.

Why Shopify Sank

Many investors are moving out from high-growth and riskier tech companies because of interest rates and inflation fears.

Shopify’s primary revenue comes from its revenue per transaction of its customers, so when customers grow their gross merchandise, Shopify makes money. Because of inflation, the prices of goods went up, causing consumers to lower their spending on e-commerce. This caused a chain reaction, affecting Shopify’s merchants and, of course, Shopify itself.

The Growth That Remains

Shopify estimates that its total addressable market is currently worth $153 billion, meaning Shopify has only captured 3% of its total revenue opportunity.

You can be sure that the company will keep going in the right direction for the next decade.

Also, Shopify is also focusing on expanding its offering, that way, and it will be even more appealing to its customers. The company is investing in its network to help merchants during the whole shipping process.

Is Shopify a Buy Now?

E-commerce businesses such as Sea Limited and Mercado Libre have less than 10 times sales when compared to Shopify.

Shopify also has many advantages. First, it is already dominant in small- to medium-sized businesses. It also has plenty of runways to growth, from product expansion to addressable market for customers.

The company has plenty of room to expand and further develop, which makes it a great option right now despite it’s.