Is SHOP a good stock to buy? We came across a bullish thesis on Shopify Inc. on Investomine’s Substack. In this article, we will summarize the bulls’ thesis on SHOP. Shopify Inc.’s share was trading at $ 131.15 as of April 17th. SHOP’s trailing and forward P/E were 139.52 and 69.44 respectively according to Yahoo Finance.
Shopify Inc., a commerce technology company, provides tools to start, scale, market, and run a business of various sizes in Canada and internationally. SHOP delivered a standout performance in 2025, generating $11.6B in revenue (+30% YoY), $2.0B in free cash flow, and demonstrating sustained operating leverage, marking its transition into a profitable compounder rather than a reinvestment-heavy growth story. Growth remained broad-based across geographies, merchant cohorts, and channels, with GMV rising 29% to $378.4B, supported by strong momentum in Merchant Solutions (+35% YoY in Q4) and Subscription Solutions (+17%).
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
The company’s ability to grow revenue at ~30% while expanding operating income by 37% highlights meaningful scalability, even as it continues investing in AI-driven tools such as Sidekick and its commerce infrastructure. Key growth vectors—including international revenue (+36%), offline (+27%), and B2B GMV (+96%)—underscore deepening ecosystem penetration, while Shop Pay GMV surged 62%, reinforcing monetization strength.
With over 14% share of U.S. e-commerce, Shopify has firmly moved beyond its SMB roots into a dominant platform position. Financially, the company exited the year with ~$5.8B in cash and initiated a $2B share repurchase program, signaling confidence in long-term value and capital return capacity.
Looking ahead, management’s guidance for continued ~30% revenue growth suggests durability, even with modest free cash flow normalization. Shopify’s consistent double-digit free cash flow margins, expanding ecosystem, and accelerating adoption across enterprise, B2B, and offline channels position it as a structurally advantaged commerce infrastructure platform capable of sustaining high growth while compounding profitability over time.
Previously, we covered a bullish thesis on Shopify Inc. (SHOP) by Compounding Your Wealth in May 2025, which highlighted the company’s dominant position in global e-commerce, expanding high-margin revenue streams, and strong growth outlook driven by GMV, B2B, and POS adoption. SHOP’s stock price has appreciated by approximately 29.19% since our coverage. Investing Intel shares a similar view but emphasizes on near-term volatility and GMV softness.
Shopify Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 101 hedge fund portfolios held SHOP at the end of the fourth quarter which was 91 in the previous quarter. While we acknowledge the risk and potential of SHOP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SHOP and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
