Will Shopify maintain double-digit growth in the coming years?
The owner of the online store hosting platform Shopify Inc. (SHOP) has risen in price more than 80 times since its IPO six years ago. At the auction on December 8, the SHOP stock was worth $ 1520.51.
According to Wall Street experts, the company will continue to grow at double-digit rates in the coming years, and in ten years, it will be able to reach a capitalization of $ 1 trillion. The main driver of Shopify’s growth is the acceleration trend in the e-commerce market.
After a successful 2020 for online trading, the pace may slow down slightly, but the primary beneficiaries, including Shopify, will maintain high growth rates. The company itself does not provide accurate forecasts for future growth but claims that growth will continue in a more or less normalized manner.
About $2 trillion is spent annually on 100 leading trading platforms worldwide, which leaves a lot of room for Shopify’s growth. According to Wall Street forecasts, the company’s revenue will grow by more than 38% annually over the next five years, and by the middle of the decade, it will grow from $2.9 billion to almost $14.6 billion.
This forecast may probably be a bit conservative, as Shopify’s revenue grew 46% in the third quarter. The fourth quarter I to bring the largest share of annual revenue. In recent quarters, Shopify has introduced new features and entered new markets. For example, the company has added the TikTok Shopping service, allowing consumers to find products on the shopping tabs directly linked to the seller’s online store.
Shopify has also launched a free money management platform called Shopify Balance. According to FTI Consulting estimates, the online retail market share as a percentage of total retail sales in the US will grow from 18% in 2020 to 33% by 2030.
By 2023, it will exceed the $1 trillion mark and approach $2 trillion by 2030. At the same time, only the small and medium-sized business market is a $153 billion opportunity for Shopify.
