13 Most Profitable Growth Stocks to Buy Now

9. Shopify Inc. Class A Subordinate Voting Shares (NASDAQ:SHOP)

Net Profit in the latest fiscal year: $1.64 billion

Revenue CAGR last 5 years: 43.27%

Number of Hedge Fund Holders: 64

​Shopify Inc. Class A Subordinate Voting Shares (NASDAQ:SHOP) is a multinational e-commerce company that provides a cloud-based platform on which businesses can create and manage online stores. The platform also offers complementary services like payment processing, marketing, shipping, and customer engagement tools. The company has managed to establish an almost complete e-commerce solution for businesses of all sizes and has managed to attract even giants like Mattel and Nestle. SHOP ranked fourth on our recent list of 10 Best Economic Recovery Stocks to Buy.

Shopify Inc. Class A Subordinate Voting Shares (NASDAQ:SHOP) delivered exceptional results in the latest reported Q4 2024, with 31% revenue growth and 22% free cash flow margins, achieving the “rule of 50” at a remarkable scale. The company’s annual performance was equally impressive, with 26% revenue growth and an 18% free cash flow margin for the year, while gross merchandise value (GMV) approached $300 billion and revenue reached $9 billion. Notably, SHOP’s operating income surpassed $1 billion for the year, four times higher than its previous peak of $269 million in 2021, demonstrating significant operational efficiency. The company also achieved significant milestones, including serving over 875 million consumers, crossing $1 trillion in cumulative GMV, and increasing Shop Pay adoption to 38% of gross payment volume. These metrics reflect SHOP’s potential as one of the most profitable stocks on our list.

Looking ahead to 2025, Shopify Inc. Class A Subordinate Voting Shares (NASDAQ:SHOP) is focusing on several key strategic initiatives, including simplification of its platform, deeper investment in AI capabilities, and continued international expansion, particularly in Europe and Japan. The company has demonstrated strong momentum in enterprise adoption, with major brands like Reebok, Champion, and FC Barcelona joining the platform. Importantly, SHOP maintains a strong financial position while keeping headcount stable, indicating improved operational efficiency. Management expressed confidence in the company’s position as a growth company operating with operational discipline, consistently delivering some of the strongest results in the software industry.