The COVID-19 pandemic has thrown some sectors back years. In the worst cases, like the movie theatre industry, there are fears that its impact could represent a mortal threat. But some spaces have received a boost due to the pandemic. Retailers have faced massive challenges in 2020. Consumers in North America and around the world were already moving progressively to digital channels. However, the COVID-19 pandemic has accelerated the growth of e-commerce.
Today, I want to discuss how new investors can jump in on some of the best e-commerce stocks Canada has to offer.
This top e-commerce stock has soared over the past five years
Shopify (TSX:SHOP)(NYSE:SHOP) is an Ottawa-based technology company that debuted on the TSX back in 2015. It provides a cloud-based multi-channel commerce platform for small- and medium-sized businesses around the world. Shares of Shopify have climbed 178% year over year as of close on September 10.
Earlier this month, I’d discussed the promising growth trajectory in the e-commerce software space. Grand View Research recently projected that the global e-commerce market would grow at a CAGR of 16.3% from 2020 through 2027. In Q2 2020, Shopify delivered total revenue growth of 97% to $714.3 million. Meanwhile, gross profit increased 83% to $375 million.
This company continues to draw huge attention due to its high-growth potential. Moreover, it boasts an immaculate balance sheet. Investors who are looking to start in e-commerce can do a lot worse than Shopify to kick off this decade.