Portfolio: Zacks Focus List

Shopify (NASDAQ: SHOP) presents a compelling growth investment opportunity centered on its position as the leading enabler of global e-commerce entrepreneurship. The company has evolved from a simple store-building platform into a comprehensive commerce operating system, capturing an increasingly dominant share of the world’s digital commerce infrastructure.

The company posted 31% year-over-year growth in Q2 2025, with consistent 25%+ growth for eight consecutive quarters, led by 29% of the US e-commerce platform market share and 10.32% globally, making it the 4th largest platform worldwide. And while the company has always shown impressive top-line growth, profitability was a big question mark for investors in the past. However, now the company achieved 16% free cash flow margin with eight consecutive quarters of double-digit free cash flow margins as it scales.

The company’s ‘Shopify Markets’ platform enables merchants to sell in 150+ countries from a single dashboard, capturing the massive $1.51 trillion cross-border B2C e-commerce market expected to reach $9.96 trillion by 2033. This makes Shopify a high-quality growth company with sustainable competitive advantages in the expanding global e-commerce market.