UBS Says Shopify’s (SHOP) Retail POS Business Could Drive Long-Term Growth

Shopify Inc. (NASDAQ:SHOP) is one of the most promising growth stocks to buy now. On May 28, UBS reiterated a Neutral rating on Shopify Inc. (NASDAQ:SHOP) and a $130 price target. The research firm expects the Retail POS business to be a key driver of growth, as it currently accounts for 12% of gross merchandise volume.

UBS Touts Shopify Inc. (SHOP) Prospects on Retail POS Business Growth

According to UBS, the Retail POS remains an underappreciated part of the business while being part of the long-term growth algorithm. It expects the business to contribute between 300 and 500 basis points of Shopify’s 10-year gross merchandise volume compound annual growth rate of up to 21%. It also expects the business to contribute between 100 and 200 basis points of a 10-year gross profit compound annual growth rate of between 15% and 20%.

The expected growth would come against the backdrop of the differentiated offering that combines Shopify’s eCommerce and ecosystem with in-store POS. The company will also benefit, as the market is relatively fragmented and lacks a clear leader.

Shopify Inc. (NASDAQ:SHOP) is a comprehensive, cloud-based e-commerce platform used by individuals and businesses to create, manage, and scale online stores. It provides everything needed to run a digital business, including website building, inventory tracking, payment processing, and shipping management, without requiring coding or technical expertise.

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.

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