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This Growth Stock Surged 44% in 2024. Here's Why 2025 Could Bring An Even Bigger Gain

Chris MacDonald

Published: January 22, 2025 10:45 am

Shopify (NYSE:SHOP) is an e-commerce giant that’s seen incredible volatility in recent years. This stock is up more than 27% over the course of the past year (and surged 38% in 2024), but still remains around 40% below its pandemic high. Accordingly, this is a stock that some long-term growth investors still aren’t sold on.

From a momentum perspective, this certainly makes sense. However, Shopify’s long-term growth trajectory is impressive, and long-term investors who have owned this stock since its IPO are up roughly 100-fold at current levels.

Given that Shopify is still trading around 40% below its all-time high set in 2021, let’s dive into why 2025 could be another big year for the e-commerce platform provider.

Key Points About This Article:

• Shopify continues to be among the top growth stocks long-term investors have benefited from owning over the past decade.
• After posting very solid gains in 2024, here’s why 2025 could be another big year for investors in this e-commerce giant.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

What to Make of 2024

Shopify’s stock price has certainly gone on quite the journey over the past year. Volatile price swings, characterized by significant fluctuations and a robust recovery, culminated in an impressive surge following the company’s third-quarter earnings report. These results came in much better than expected, raising investor expectations for higher growth in the coming quarters, and leading to a significant surge in demand for the company’s shares.

Of course, all companies are valued on a forward basis, as a reflection of the market’s consensus on how much the company will return in terms of cash flows, discounted other the present. However, looking at past results can be beneficial for investors looking to assess the trend, and these results certainly changed the minds of many investors in this stock.

The company brought in $2.16 billion in revenue, marking an impressive 26% increase year-over-year. This performance was particularly notable as it represented the sixth consecutive quarter where revenue growth exceeded 25%, a streak that notably did not include logistics operations. 

By early November, Shopify’s stock price had already surged more than 38% year-to-date. Accordingly, despite some recent selling pressure, all indications are that future earnings beats should lead to significant buying activity, if the market believes that this growth trend can continue in the quarters and years to come. 

What to Expect from Shopify in 2025?

Moving forward, I do think many of the catalysts and trends we saw play out last year are likely to continue into 2025. Indeed, a number experts agree, with a range of forecasts pointing to solid growth ahead.

Now, the breadth of these forecasts does suggest that some volatility could be on the horizon. And given the company and its respective sector, I wouldn’t be surprised to see some rather sharp swings throughtou the year ahead.

That said, I do think that Shopify’s growth trajectory in the first half of 2025 appears particularly robust. I think this stock could certainly make a similar move to its 2024 push, with growth investors eyeing any sort of reason to take this stock toward its previous all-time high. Of course, various macro catalysts such as lower interest rates and a still strong consumer will need to materialize for this to take place. But assuming the soft landing narrative remains in place, Shopify is one e-commerce giant that could certainly benefit from improved rhetoric over the next year.

Shopify Remains a Growth Stock to Hold

Shopify’s strong third quarter results really are just one data point to look at. Overall, the company operates in a high-growth sector (relative to other areas of the tech market), and has produced solid cash flow growth since its IPO. If a reaccelerating of top and bottom line growth can be sustained, this is a growth stock I think long-term investors would do well holding through 2025.

That’s not to say that headwinds can’t and wont’ materialize over the course of the coming year. Again, I’m expecting some volatility ahead. But for those who can handle the potential incoming price swings, this is a stock I think investors will do well to hold over time. Indeed, if analyst expectations of 26% annually earnings growth through 2026 pan out, this is a stock I think could certainly trade back at new all-time highs in the years to come.