Beyond Tesla: Best Bets for the Next Trillion Dollar Companies

Shopify (SHOP)

Source: Burdun Iliya / Shutterstock.com

Shopify (NYSE:SHOP) is a pandemic darling stock that has been a volatile e-commerce play.

The company is up by almost 300% over the past five years but is down by over 60% from its all-time high. Shopify represents the highest potential gains out of the companies on this list since it carries an $83 billion market cap. The stock would have to grow by more than 10x to join the trillion dollar club.

The stock certainly has enthusiasm behind it, as it has nearly doubled in 2023. Tesla experienced several rips and sharp declines before reaching the $1 trillion milestone.

Shopify still exhibits strong top-line growth as evidenced by a 25% year-over-year revenue increase in Q1 2023. Rising costs and an excessive valuation hampered the company and caught up with the stock in 2022, but 2023 has been a different story.

Leadership’s efforts to reduce costs in 2023 have put Shopify back to profitability and are responsible for the stock’s recent rally. Shopify completed its sale of Shopify Logistics to Flexport and trimmed its workforce to reduce costs and fuel a surprise profit in Q1 2023.

Lower costs will elevate profits and lead to a more appealing P/E ratio. While the valuation remains high, Shopify’s move to profitability and high revenue growth suggests the stock can rise higher in the years ahead.

On this date of publication, Marc Guberti has positions in AVGO and SHOP. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

More From InvestorPlace

The post Beyond Tesla: Best Bets for the Next Trillion Dollar Companies appeared first on InvestorPlace.

Pages: 1 2 3 4

thewealthiestinvestor.com is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of thewealthiestinvestor.com are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

The sender of this email makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of thewealthiestinvestor.com websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.

Disclaimer: Past performance is no guarantee of future performance. This product is for educational purposes only. Practical application of the products herein are at your own risk and thewealthiestinvestor.com, its partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Any trades shown are hypothetical example and do not represent actual trades. Actual results may differ. Nothing here in constitutes a recommendation respecting the particular security illustrated.