Announcing: Shopify (NYSE:SHOP) Stock Soared An Exciting 618% In The Last Three Years
It might be of some concern to shareholders to see the Shopify Inc. (NYSE:SHOP) share price down 19% in the last month. But over the last three years the stock has shone bright like a diamond. Indeed, the share price is up a whopping 618% in that time. Arguably, the recent fall is to be expected after such a strong rise. The thing to consider is whether there is still too much elation around the company's prospects.
It really delights us to see such great share price performance for investors.
View our latest analysis for Shopify
Given that Shopify didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last 3 years Shopify saw its revenue grow at 47% per year. That's well above most pre-profit companies. In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 93% per year, over the same period. Despite the strong run, top performers like Shopify have been known to go on winning for decades. In fact, it might be time to put it on your watchlist, if you're not already familiar with the stock.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Shopify is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
Pleasingly, Shopify's total shareholder return last year was 99%. That's better than the annualized TSR of 93% over the last three years. The improving returns to shareholders suggests the stock is becoming more popular with time. Before spending more time on Shopify it might be wise to click here to see if insiders have been buying or selling shares.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
