Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Silver Notches Best Month Since 1979 - 12th Aug 20
Silver Shorts Get Squeezed Hard… What’s Next? - 12th Aug 20
A Tale of Two Precious Metal Bulls - 12th Aug 20
Stock Market Melt-Up Continues While Precious Metals Warn of Risks - 12th Aug 20
How Does the Gold Fit the Corona World? - 12th Aug 20
3 (free) ways to ride next big wave in EURUSD, USDJPY, gold, silver and more - 12th Aug 20
A Simple Way to Preserve Your Wealth Amid Uncertainty - 11th Aug 20
Precious Metals Complex Impulse Move : Where Is next Resistance? - 11th Aug 20
Gold Miners Junior Stcks Buying Spree - 11th Aug 20
Has the Fed Let the Inflation Genie Out of the Bottle? - 10th Aug 20
The Strange Food Trend That’s Making Investors Rich - 10th Aug 20
Supply & Demand For Money – The End of Inflation? - 10th Aug 20
Revisiting Our Silver and Gold Predictions – Get Ready For Higher Prices - 10th Aug 20
Storm Clouds Are Gathering for a Major Stock and Commodity Markets Downturn - 10th Aug 20
A 90-Year-Old Stock Market Investment Insight That's Relevant in 2020 - 10th Aug 20
Debt and Dollar Collapse Leading to Potential Stock Market Melt-Up, - 10th Aug 20
Coronavirus: UK Parents Demand ALL Schools OPEN September, 7 Million Children Abandoned by Teachers - 9th Aug 20
Computer GPU Fans Not Spinning Quick FIX - Sticky Fans Solution - 9th Aug 20
Find the Best Speech Converter for You - 9th Aug 20
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
NATURAL GAS BEGINS UPSIDE BREAKOUT MOVE - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Shopify Is Seizing an $80 Billion Pot of Gold

Stock-Markets / Investing 2020 Jul 28, 2020 - 01:40 PM GMT

By: Stephen_McBride

Stock-Markets

I’m about to show you the most important table in all of investing. Please look at it closely.

Below, you’ll find the world’s 10 largest publicly traded companies in 2000, 2010, and 2020.


You probably recognize most of these stocks. The 2020 column reads like a “who’s who” of the most popular US stocks today. But you’ll notice a strange pattern when you look across all three columns.

The list completely changes every decade. In other words, most of the world’s dominant companies falter and fall out of the top 10. Only Microsoft has maintained its position since 2000.

And usually when a stock drops off the list, it does not decline gracefully. Investors who owned it get crushed. For example, from 2001–2018, General Electric (GE) stock plunged 79%, Cisco (CSCO) collapsed 89%, and Intel (INTC) dropped 56%.

Now I’ve practically memorized all the “top 10” lists going back to the ‘60s. And what they indicate might shock you: Owning the largest companies in the world is usually a money-losing strategy.

Instead, You Want to Own the “Rising Stars”

In other words, you generally don’t want to own the stocks “at the top of the mountain” today. Instead, hunt for the stocks that are climbing the mountain. The ones that will be on top in 5–10 years.

In my experience, most investors do the opposite. They gravitate toward companies that are already huge. They think huge = safe. They assume today’s powerful companies like Apple and Facebook will be powerful forever.

That’s not usually how it turns out. We see it play out over and over again in the stock market: Smaller, hungrier companies rise up and eat the lunch of larger, older companies. Today, I’ll predict one new rising star that could someday claim a spot in the top 10.

Have you heard of Shopify (SHOP)?

Shopify builds online stores for mom-and-pop shops. From creating the website, to shipping orders, to processing payments, Shopify is a “one-stop shop” for anyone wanting to sell online.

Americans are spending more money online than ever before. In 2009, internet shopping was a $100 billion business. Last year consumers spent over $600 billion online. The thing is, mom-and-pop shops only grab a tiny slice of the pie.

There are 30 million small businesses in the US. They make up 99.9% of all companies in America. And according to IRS data, firms with less than $100,000 in annual sales raked in a combined $2.2 trillion last year. Yet almost none of this happens online.

A recent CNBC poll found almost half of small businesses don’t even have a website. And according to Gallup, 2/3 of mom-and-pop stores that sell online generate less than 10% of their sales on the internet.

The Coronavirus Sparked a Wave of Mom-and-Pop Stores to Shift Online.

It forced tens of millions of businesses to close their doors for months. And the only way to keep cash coming in was to sell online. Businesses that didn’t even have a rudimentary website were suddenly rushing to set up fully functional internet stores.

Web hosting company GoDaddy found 20% of small businesses sold an item online for the first time ever during lockdown. Until recently, creating an online store during a pandemic would have been impossible. But as I showed you, Shopify came to the rescue for millions of mom-and-pop shops.

New stores created on Shopify’s platform surged 62% during the lockdowns. And the most shocking stat of all: Stores with a presence on Shopify recouped 94% of lost in-person sales with online orders! Internet shopping has grown more in the past 12 weeks than it did during the last decade, as you can see here:

The hundreds of thousands of small businesses that shifted online are never going back. For as little as $29 a month, Shopify manages every part of their online stores, including deliveries.

To put it mildly, that’s a real bargain, considering Shopify was the only thing that saved many mom-and-pops from going belly up during lockdowns.

In fact, being online also helps them reach thousands of new customers. Internet shopping has no boundaries. With a Shopify website, the neighborhood craft store can now sell to folks across the country.

Shopify Is Seizing an $80 Billion Pot of Gold

Remember, Shopify is like an invisible partner that allows businesses to build their own online brands. It handles the “dirty work” of online selling, like payments, shipping, and marketing without taking any of the credit. In fact, last year almost 300 million people bought something on Shopify without even knowing it existed.

This is why it’s fast becoming the “go-to” solution for anyone wanting to sell anything online. Shopify now powers over one million merchants from 175 countries. And these businesses sold $60 billion worth of goods through its platform last year.

Yet, this is only the tip of the iceberg. Shopify estimates there are 47 million small businesses that it doesn’t serve yet. It collects $1,650/year from each merchant, on average. That means Shopify could potentially rake in $80 billion/year.

Sales hit $1.5 billion last year. Shopify’s revenues could soar 10X and it would still have captured just 20% of its target market. And that’s not even counting the larger brands Shopify is serving.

It already hosts websites for giants like Unilever, Red Bull, Heinz, Budweiser, Pepsi, and Nestle. And these big firms typically pay $2,000 per month for Shopify’s premium offering, Shopify Plus.

Shopify’s stock has been on a tear over the past two years, handing investors 745% gains. That’s a big gain in a short period, so I wouldn’t go “all in” on the stock here.

But remember this: Online business is still only in its first inning. Shopify is the key to unlocking business on the internet for millions of mom-and-pops. It’s one of the most important internet companies investors aren’t paying attention to. And I expect by 2030, we might be talking about Shopify like we talk about Amazon and Apple today.

The Great Disruptors: 3 Breakthrough Stocks Set to Double Your Money"
Get my latest report where I reveal my three favorite stocks that will hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Stephen McBride

http://www.riskhedge.com

© 2020 Copyright Stephen McBride - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules