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During the tech stock bear market of 2022, some of Canada’s biggest tech companies went out of business. Before the crash, Shopify (TSX:SHOP) had the most market value of any stock on the TSX.
During the selloff, Shopify stock lost more than 80% of its value from its high to its low.
Even though some of the correction might have been fair because share prices were inflated during the 2020 market surge, I still think Shopify stock can move on and fully return to better levels.
Even though the tech industry has had some failures, there is no doubt that the e-commerce industry still has a long way to go. Even though a recession might slow or stop growth, Shopify is in a good situation to get a big share of the e-commerce market.
Shopify could become even more important in the coming years as a big platform that gives merchants of all sizes better opportunities.
Plenty of Room and Potential to Grow
AI integration is becoming more and more popular in all industries, so it’s not surprising that it will also help the e-commerce business. Shopify can add new tech tools to improve its platform, from tools for describing products to more complicated AI services.
The company has a track record of making smart purchases that help it grow. It wouldn’t be strange if it bought more AI companies to improve its platform. Due to Shopifya’s latest earnings, the price of its shares went up by 35% from May 4 to May 8, 2023.
