How to buy Shopify (SHOP) stock on the TSX

Why Canadians want Shopify (SHOP) in their portfolio

Shopify, if you’re unfamiliar, is one of Canada’s tech darlings. If you’ve purchased anything online recently, you’ve likely done so through Shopify – probably without even knowing it.

Shopify is an all-in-one e-commerce platform that allows businesses to sell in-store and online. It provides tools for everything from marketing to managing payments, shipping and customer engagement. Over 5 million online retailers¹ have been built using Shopify, it accounts for nearly $450 billion in global economic activity, and it’s estimated to have over 700 million customers.

Not bad for a platform that was originally created to sell snowboards online.

It’s an obvious Canadian tech giant.

Here are some reasons you might want to add it to your portfolio:

• Its global reach, innovation in tech and – especially, these days – artificial intelligence
• Its nearly +25% growth in stock price over the past year
• 34/50 analysts consider it a “buy” or “strong buy” in April; 14/50 consider it a “hold”
• Revenue increased from $7.06 billion in 2023 to $8.88 billion in 2024
• It’s tripled in growth since 2020

Shopify stock price today and market overview (CDN)

Stock prices change daily, so it’s important to keep on top of performance if you’re considering investing in a specific company. To get you started, here's a tracker. 

Some other things to know about Shopify is that it had a 10-1 stock split in 2022, lowering the price of individual shares, which made it more affordable to retail investors to invest in the company.

November to January is considered the peak season for the stock, according to The Motley Fool³ – this means you may get a discount on the share price outside that period. 

Like all stocks at the moment, there is some volatility with uncertainty around global tariffs. Fears of a recession are something else to consider, as retail spending typically dips during times of slower economic growth. 

However, analysts do foresee a potential buying opportunity for Shopify, especially considering the company is bullish on AI. Its “Shopify Magic” is a free AI tool that helps retailers start, run and grow their business.

Is Shopify a good stock to buy right now?

Shopify has an average 12 month price target of $122.91 at publication time⁴, according to 37 Wall Street analysts. The high target is $242.73 and the low is $110.96. As mentioned, most analysts consider Shopify a good stock to buy right now. However, if dividends are your thing, you might want to look elsewhere as the Shopify stock doesn’t pay any. 

Fundamentally, Shopify has strong cash flow, with double-digit free cash flow margins it expects to continue in the future⁵. It also expects revenue to grow at a low-to-mid-twenties percentage rate year-over-year. In terms of cash reserves, the company reported $1.507 billion in cash and cash equivalents in Q3 2024. 

So, does Shopify match your risk portfolio? It made our list of top Canadian tech stocks earlier this year, where we wrote “it’s a standout opportunity that shows no signs of slowing down.”

How to buy Shopify stock on the TSX in 5 easy steps

It’s super simple to purchase Shopify (SHOP) on the TSX. 

1. 1 Step 1: Open a Canadian brokerage account (using a brokerage like Questrade, Wealthsimple, or your bank of choice).
2. 2 Step 2: Fund your account (CAD).
3. 3 Step 3: Search for “SHOP”.
4. 4 Step 4: Choose between market order or limit order.
5. 5 Step 5: Review, place your order and track performance.

Want to buy Shopify without picking individual stocks?

If you like Shopify but prefer not to invest in individual stocks, you can purchase ETFs that include Shopify within them – a great option for hands-off traders.

These include ARK Innovation ETF (ARKK) on Cboe Canada, a stock exchange based in Toronto and iShares S&P/TSX Capped Information Technology Index ETF (XIT) on the TSX. You can search for these on your brokerage account.

There are some positives and benefits of investing in ETFs instead of individual stocks. ETFs include a bucket of different securities, so they’re naturally diversified. The drawback is that, while they won’t be affected by major drops in an individual stock’s price, they also won’t benefit as much from major upswings.

Should you pull the trigger on SHOP?

Should you be investing in Shopify? Well, that’s really up to you. Like all companies, particularly those in the retail space, current economic uncertainty means some near-term uncertainty for stock prices. 

Still, most analysts agree Shopify’s stranglehold on the e-shopping market position it for solid long-term growth opportunities. Evaluate it in the context of your risk tolerance and investing horizon to determine if now is the right time to invest for you.

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