Shopify stock forecast 2025：Is it worth buying?

In the last year, the stocks rose relatively well. Another sector is e-commerce. Whether it is Amazon, Alibaba, JD.com, Pinduoduo, SEA or vertical e-commerce platforms Etsy and Chewy, all of them have experienced huge gains, while another category has benefited from the e-commerce sector.

The company is a website building tool company such as Shopify BigCommerce Holdings. Today I will talk about shopify, the leader of website building tools.

First, let's briefly talk about shopify's business model. To put it simply, shopify is a fool-like website building platform. In the past, when a company wanted to build a corporate website, it generally needed to find a dedicated person to design and maintain the website.

If you want to add shopping functions to the website, the cost of building the website will also increase. This is true for many small businesses and individual businesses.

A very difficult thing. Shopify uses the SAAS model to provide website building services. As long as you pay a monthly fee of 29.99 US dollars/month, you can use a series of integrated website building tools on Shopify. Some are free tools, and there are others. Paid tools. With these website building tools, a person who does not understand web design at all can complete a shopping website within a few hours.

The website building tools available on shopify are very rich, just like the app store in the Apple system. As the threshold for establishing shopping websites has been greatly reduced, this has attracted many small and medium-sized enterprises to start establishing their own shopping websites.

Once the website is established, how to attract customers to enter your website to buy? In the past, website drainage was a costly activity, so companies that built their own shopping websites were often wealthy and used Google keywords to attract traffic and slowly accumulate reputation. Small and medium businesses often do not have this strength, so they usually settle on some platforms, such as Amazon and eBay.

However, there is traffic on these platforms, but the same life is also in the hands of these platforms. In addition to the commission of each sale, if the rules of the platform are not met, it is also common for the store to be locked up. This makes those The small sellers are miserable, and in the end they are working for the platform.

So this is why, once small sellers have the opportunity to build their own shopping website, and at the same time do not worry about traffic, this attraction is very big. Because this is your own domain name, every incoming traffic is to accumulate reputation for your own brand and website. Shopify provides these sellers with very cost-effective traffic.

Through integration with social media such as Facebook, sellers can place advertisements on social media for a certain product, and can set the country, region, gender, and other high-matching matches. The crowd makes accurate delivery, and these traffic is introduced to the website through social media for transaction.

Shopify makes money in every transaction. If you can make money through the official payment of shopify, third-party plug-ins are listed on the shopify platform, and you can get a discount on every plug-in purchase. Once the scale is sufficient Large, this marginal benefit is very high.

So why will shopify continue to develop rapidly in the post-epidemic era? In fact, we live in China and feel that the e-commerce penetration rate is very high. In fact, the e-commerce penetration rate in other countries in the world is very low, but after the 2020 epidemic, The figure below shows the penetration rate of e-commerce in various countries.

E-commerce habits are an irreversible trend. As far as we are concerned, the epidemic has basically passed, but it has not reduced our desire to continue shopping. Therefore, e-commerce will be a fast-growing industry in other countries in the world in the next few years.

Shopify is a tool provider, unlike those platform-based companies that need to deploy a local team to enter the market of a certain country, and spend a lot of experience dealing with the government.

Shopify only provides website building tools and other related plug-ins. Small and medium-sized sellers in every country can build websites in different languages, target different groups of people around the world for accurate advertising, and carry out package transportation through cross-border logistics. Therefore, shopify's globalization threshold is very low.

Once a globalized network is formed, any added value-added services will greatly improve profitability.

Financially, revenue in 2020 will increase by 85% and net profit will increase by 355%. The current stock price has fallen from a high point by nearly 30% to the level of August last year.

From the perspective of long-term growth and the development of global e-commerce, More and more sellers prefer independent stations with high controllability and low cost. As the leader of independent station construction, shopify has a complete ecology and a high loyal user group, with high growth certainty.

The current market environment is volatile, and holding growth stocks needs to tolerate relatively large volatility or retracements.

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