Investors might believe that the world of online retail is dominated only by Amazon. But there are other businesses that are finding remarkable success in the market. Shopify (SHOP -7.85%) deserves some attention, as it provides a vast ecosystem of products and services that help companies start and grow.
The business has definitely taken investors on a volatile journey. But disciplined shareholders who have been able to stay the course are reaping huge rewards. Had you invested $1,000 in this top e-commerce stock three years ago, here's how much you'd have today.
Shopify shares are close to their all-time high
This stock is back to its winning ways. In the past three years, shares have skyrocketed 499% (as of Oct. 9). This monster gain would've grown a $1,000 starting capital outlay into almost $6,000 in just 36 months.
Shopify's all-time high of $169.06 was reached in November 2021. The stock is less than 4% off that peak right now.
Improving fundamentals have boosted the stock price
Shopify processed $87.8 billion in gross merchandise sales in the second quarter (ended June 30), a whopping 87% more than in the same period of 2022. As a result, revenue has soared. Shopify is constantly innovating, too, most notably with artificial intelligence features that further benefit its customers.
Shares no longer look like a bargain, though, as they trade for 84 times trailing earnings.
