In this clip from “The Virtual Opportunities Fair” on Motley Fool live, recorded on April 26Motley Fool Contributor Rachel Warren Explains Why Shopify (STORE 10.96%) is its leading e-commerce stock, and news that makes it an even more compelling investment.
Rachel Warren: When it came to Shopify, there was one type of aspect of the business that I’ve been looking into a little more lately – and I feel like it went without much fanfare? And it is that some sellers can actually sell NFTs on Shopify. Maybe I was just, you know, under a rock when it happened and I didn’t know. But I understand it’s a program that’s still in beta. There are only specific levels of sellers. I think those who pay a $2,000 per month subscription fee have access to this. But you can actually, through this program – and I imagine the goal is to expand it to a wider base of users and potential sellers in the future – but you can create and sell your own NFTs branding with Shopify.
You know, it’s a very thriving market that’s seen, you know, over 700% market growth between Q2 and Q3 of 2021. That’s one of the stats they cite. And one of the cool things about this Shopify beta program is that they say, you know, sell NFTs your way, whether you use credit cards or cryptocurrencies. There’s this idea here where, you know, you can sell physical products on Shopify, but could there be a movement in the next five, 10, 15 years even where it’s mainstream to buy digital versions of these products or just digital assets as a whole on Shopify. So a really interesting aspect of his business. Obviously still a very, very, very small part of his activity.
Shopify has partnered with a variety of apps to allow users to mint NFTs on popular blockchains like Ethereum and Polygon. And then, again, they’ve created this kind of really expansive way to accept payments, whether it’s, you know, crypto gateways, Shopify payments, or even credit and debit cards, that which many platforms still do not allow. this type of payment processing. So I’m curious to see if it could become a bigger part of Shopify’s overall business, you know, in the years to come. As mentioned, right now, at this point, it’s a very, very, very small slice of his overall business.
But that’s it, I love Shopify. You know, 2021 has been a very good year for the company. They’ve rolled out a bunch of really cool updates, you know. Apart from having very big profits as well as revenue growth, they have introduced something called TikTok shopping to merchants. Thus, merchants with a TikTok account for business can add products that link directly to their online store during checkout. Shopify had also launched something I wasn’t aware of called the Spotify Channel. So if you have artists, entrepreneurs on Spotify, that one that has an account with their Shopify online store and they could use that to connect that account with their Shopify online store, and they could use that to sync in sort of their product catalogs. I love all the different ways Shopify continues to expand its business and make its platform more valuable to its customers and merchants.
It is therefore a company in which I continue to have great confidence. I’m very excited to see, you know, what the first quarter of the year has in store for the company, what kind of advice they’re giving for the quarters to come. I’m trying to normalize my expectations a bit, because I think we’ve seen a lot of growth priced in a short period of time in stocks like Shopify, but I still think there’s a lot of upside for this business. So Shopify is definitely one of the best stocks I watch.