1 Beaten-Down Stock to Buy and Hold for a Decade
The e-commerce giant is coming back with a vengeance.
Overview
Shopify (NASDAQ: SHOP) hasn't performed well this year. The stock is down 8% to date, as of writing, amid valuation concerns and fears that artificial intelligence (AI) will replace many of its services, a sentiment that has weighed on much of the software industry. However, the company's second-quarter update, released on Aug. 5, breathed some life into the stock. Let's look into Shopify's latest financial results and discuss why the stock still boasts attractive long-term prospects.
In the second quarter, Shopify's revenue grew by 34% year over year to $3.6 billion. The company's operating income jumped almost 68% to $488 million, while its net income (excluding the impact of equity investments) was $439 million, up 30% from the year-ago period. Shopify's free cash flow was $654 million, up 55% year over year, while its free cash flow margin was 18%, higher than the 16% reported in the prior-year quarter. Shopify's guidance was pretty good, too. The company expects revenue growth to be in the low thirties for the third quarter.
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Originally published at www.fool.com.