Next month marks the 10th anniversary of Shopify’s initial public offering (IPO). Over this period, the Ottawa-based company has grown to become Canada’s second-largest company by market capitalization, exceeding $126 billion.
Investors who purchased shares a decade ago have seen substantial returns, although the magnitude of these gains may be unexpected to some.
### Shopify’s Growth Over a Decade
Shopify entered the public market on May 21, 2015. While the offering price was a split-adjusted $1.70 per share, shares were typically purchased by investors at around $2.56 each. This allowed for about 390 post-split shares to be acquired with a $1,000 investment. As of now, those shares are valued at just over $38,000.
The company’s success can be attributed to its outstanding e-commerce platform and supportive ecosystem. Shopify’s no-code platform enabled individuals lacking programming expertise to establish customizable e-commerce websites with ease. Furthermore, the platform prioritized transaction speed, decreasing the likelihood of transaction losses for merchants due to slow or malfunctioning sites.
In addition to the platform, Shopify developed an ecosystem designed to assist online merchants with various support tasks, such as email marketing, social media integration, and payment management.
Shopify’s stock reached record highs during the pandemic. However, the company’s attempt to expand into the shipping and fulfillment business resulted in losses and a significant stock price decline, leading to the eventual sale of that venture.
Despite this setback, Shopify has returned to profitability and resumed its growth trajectory. The company achieved a net income of $2 billion in 2024, up from $132 million in 2023. With revenue projected to grow at a mid-20s percentage rate this year, profits are expected to rise substantially.
Currently, Shopify’s stock trades at over a 40% discount from its peak. Nevertheless, with the company back on a growth path, those 390 shares are anticipated to be worth significantly more than $38,000 in the forthcoming years.
