Shopify is a great long-term investment, this investor says

On BNN Bloomberg Market Call on April 13, 5i Research head of research Chris White said Shopify (Shopify Stock Quote, Chart, News, Analysts, Financials TSX:SHOP) remains a long-term winner in global commerce infrastructure, arguing the company’s network effects and AI-driven discipline justify its premium valuation.

White said Shopify benefits from a flywheel effect in which merchants are drawn to the platform because developers are building tools on it, while developers are attracted by Shopify’s large merchant base. In his view, that feedback loop has helped the company build a durable moat and strengthen its position in e-commerce.

“I think it’s winning the global commerce infrastructure war,” he said.

He said valuation remains the main hurdle for investors, but argued Shopify is the kind of business where traditional cheapness metrics can miss the quality of the underlying model. White said the company combines strong fundamentals with a management team that continues to focus on efficiency as it scales.

He pointed to CEO Tobi Lütke’s AI-first approach, under which teams are expected to determine whether work can be done with AI before adding headcount. White said that mindset should help support margin expansion over time.

“I don’t think it’ll get cheap on a valuation, but I like it long term,” he said.

Among analysts covering the stock, 41 rate it “Buy,” 13 rate it “Hold” and one rates it “Sell,” with a consensus price target of $157.72.

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