Shopify is a company that I have had success investing in this year, this is the case even despite the recent drop of 24% from the high it reached a few months ago. Shopify is a company with excellent business fundamentals and is benefiting from network effects that will likely continue to boost growth. With revenue growing at +50% over the past few years and with a business model that leads to stable revenue streams due to the fact that much of its revenue is from subscription and transaction fees which will increase as volume through its partners increase. I remember investing in Visa and seeing the success of a business model that charges fees on transactions through a financial intermediary that customers have difficult moving away from once they start using in their business.
Though Shopfiy trades at a lofty price I think it is well worth it. It's market cap is $40 billion and for an online e-commerce platform that is best in breed this is cheap when compared to other large dominant technology companies. Shopify is cash flow positive and has an excellent balance sheet so it is not dependent on the capital markets to survive. It recently sold shares to help with the growth of its fulfillment business, but this was a small price to pay to help it accelerate the development of this business so that it can dominate this service before other large e-commerce platforms creep into this space.
I think Shopify is a good investment at this point of time and the recent correction provides an attractive entry point for investors to purchase shares.