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 +0.14%). After climbing 44% year to date, the stock is closing in on an all-time high.
NASDAQ: SHOP
Key Data Points
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.
Image source: Getty Images.
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.
