Once considered a market darling, tech giant Shopify (SHOP 0.29%) hasn't had the best past few months. The company's shares have been down by nearly 74% since the beginning of the year. That's a horrible performance even compared to the broader market -- which hasn't been in the best shape recently.

I am sure many of Shopify's shareholders are considering dumping the stock and taking their money elsewhere if they haven't already. But as a shareholder, this idea hasn't even crossed my mind, and I am not particularly worried. Here's why. 

I'm still up

Shopify has trounced the market since its 2015 IPOs. Those who held the company's shares for most of the company's public trading are still happy shareholders.

SHOP Chart

SHOP data by YCharts.

While I haven't been a Shopify shareholder for that long, I've held shares long enough that I am still up. Even those who got in by 2019 should be pleased. Over the past three years, Shopify's stock still shows a performance that rivals that of the S&P 500 in this period.

Zooming out always helps give a little perspective, whether it comes to individual stocks or the broader market. Even massive market crashes eventually look like relatively minor drops on a chart in the long run. Since I foresee having money invested in the stock market for the coming few decades, these downturns -- although not particularly enjoyable -- do not bother me too much.

Shopify still has room to grow

Shopify operates in the highly competitive e-commerce industry. Although online shopping seems ubiquitous, the death of traditional brick-and-mortar stores hasn't quite happened yet. In the first quarter, e-commerce sales accounted for just 14.3% of total retail sales in the U.S.

The industry's penetration is likely lower in most other countries, particularly those with lower rates of internet use. This means that the e-commerce market can still grow by leaps and bounds, and companies like Shopify are well-positioned to benefit. What sets Shopify apart is the value it offers its prospective clients. 

A couple shopping online.

Image source: Getty Images.

The company prides itself on being a one-stop-shop for all things merchants need to start and run an online store. Shopify's vast array of complementary services is likely one of the reasons behind the increase in the number of merchants it boasts. The company had 2,063,000 merchants at the end of 2021. That's up from 609,000 merchants at the end of 2017.

Further, Shopify's ecosystem includes developers who create apps to fit the unique needs of business owners. The company's growing ecosystem will render its platform more sticky -- with merchants continuously adding more and more of Shopify's services. Opening and successfully running a business online takes time, money, and effort.

Shopify seeks to make this task nearly as effortless as possible, which will help it continue to attract customers to its platform. And of course, more clients means more revenue. 

Keep your eyes on the prize

Yes, Shopify is dealing with various headwinds. These include geopolitical tensions and interest rate hikes in the U.S. that might harm the economy. Also, the company's revenue growth has slowed. Shopify's top line increased by 22% year over year to $1.2 billion in the first quarter. Shopify's shareholders are used to much more impressive growth rates. Also, the tech giant isn't consistently profitable yet.

Shopify reported a massive net loss of $1.5 billion during the quarter, compared to the net income of $1.3 billion reported during the year-ago period. However, much of Shopify's red ink had to do with unrealized losses linked with equity investments in e-commerce platform Global-E Online and fintech specialist Affirm. Shopify's adjusted net income for the quarter was $25.1 million, compared to an adjusted income of $254.1 million recorded during Q1 2021.

That is still a notable decrease, but it is much better than the company's nonadjusted net loss. When it comes to top-line growth, Shopify faces challenging year-over-year comparisons. In 2020 and 2021, it benefited from pandemic-related tailwinds that have now subsided. Once we move past the outbreak, Shopify should see better growth numbers, especially as it invests in growing its business, including the money it is pouring into its fulfillment network.

Overall, I am confident that Shopify will deliver solid performances in the next decade. That's why I am holding onto my shares -- and I am even considering buying fresh ones at a discount.