The current bull market in stocks has been mostly driven by tech and artificial intelligence (AI), but consumer-related stocks could be on the verge of joining the rally. This is evident when looking at the performance of the SPDR S&P Retail ETF, which has surged 25% since April 1 and is closing in on its all-time high from late 2021.
A breakout for consumer goods stocks could extend the bull market for several more years. One top stock that could lead the new bull market for consumer goods is Shopify (SHOP 0.52%). After climbing 44% year to date, the stock is closing in on an all-time high.
Shopify stock is a long-term compounder
While Amazon dominates U.S. e-commerce, there are millions of small businesses that need solutions to reach more shoppers and grow their business in a digital economy. Shopify not only offers all the tools needed to set up an online storefront, it offers AI tools that can help small businesses achieve greater efficiency.
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The company has continued to expand its offerings in recent years, which has stretched its addressable market and widened its competitive moat. Revenue increased from $205 million in 2015 to over $8 billion last year. It's still going strong, with revenue up 31% year over year in the second quarter. This consistent, high growth reflects Shopify's small share of global e-commerce, which ended 2024 at 12%.
Shopify can grow for many years. It is attracting larger brands, and it also offers business-to-business and offline solutions, which are both showing robust momentum right now. Shopify is not just about e-commerce anymore; it's becoming the go-to solutions provider for all commerce. Investors who buy and hold the stock for at least 10 years should see market-beating returns on their investment.
