Shopify (SHOP, Financial) was also penalized by investors for spending to enhance its service. The company announced approximately $1.2 billion of investments in its fulfillment network. If successful, we expect that Shopify will match delivery levels offered by Amazon and put the e-commerce platform in a far superior position relative to other providers. Its client base should remain with the service.
Shopify Inc. is a cloud-based software provider offering an operating systemfor multi-channel commerce. Shopify has been adopted by over two million merchants that processed $175 billion of gross merchandise volume in 2021, making it the second largest e-commerce player in the U.S. The stock corrected due to the normalization in e-commerce from the early stages of the pandemic and the rotation out of fast-growth stocks. We believe Shopify has a long runway for growth as it has less than 1% of global commerce spending.
From Ron Baron (Trades, Portfolio)'s Baron Partners Fund first-quarter 2022 commentary.