Stocks That Could Be The Next Shopify

Stocks That Could Be The Next Shopify: E-commerce is rapidly pulling market share away from traditional brick-and-mortar retailers. The pandemic accelerated this trend, but it wouldn’t have been possible without Shopify. That’s because Shopify brought e-commerce to the masses – specifically, small businesses with no tech know-how. 

The Shopify platform makes it possible for anyone to set up an e-commerce site in moments, complete with digital payment solutions. It works for micro-businesses, traditional small businesses, and retailers that are more accustomed to in-person customer interactions. 

Shopify has been a massive success – so much so that a number of companies want a piece of the e-commerce pie. They are looking to match Shopify’s success – and eventually, pull ahead to become the new leader in facilitating e-commerce for businesses of all sizes. 

Industry analysts have identified three stocks that could be the next Shopify. Here’s what you need to know before you invest. 

Coupang Is The “South Korean Amazon”

The South Korean company Coupang held its IPO in early 2021, and it was met with great excitement.

Coupang’s management described the company as the “Amazon of South Korea,” and investors were quick to buy in. It has been growing rapidly based on advantages like the ability to get a vast array of products into consumers’ hands within 6 to 24 hours. 

South Korea is seeing the same transition to e-commerce as the United States and other developed nations.

Coupang intends to be the service of choice for South Korean consumers, because it plans to offer a one-stop solution for any e-commerce need. For example, the company is moving into live commerce, and it is in the process of launching Coupang Eats. 

Naysayers express skepticism that Coupang can overcome the challenges presented by local competitors. Yes, e-commerce is growing at an unprecedented rate in South Korea, but to date, Coupang only holds 13 percent of the market.

Pulling consumers away from peers like Naver, Lotte, 11st Street, and eBay Korea will be difficult to manage based on side-by-side comparisons. 

Bears notwithstanding, plenty of analysts are all-in on Coupang.

The company achieved $12 billion in revenue for 2020, and it raised another $4.55 billion during the IPO. For a brief period, Coupang was valued at $109 billion, and it’s only early days. Many believe there is substantial growth to come, and that means profits for shareholders. 

Baozun Is Shopify With “Jet Fuel”

Chinese e-commerce service provider Baozun might appear similar to Shopify at first glance, but a deeper look illustrates the fact that the two are actually quite different.

While Shopify empowers businesses to enter the world of e-commerce using a self-service model, Baozun takes a full-service approach. The company handles e-commerce start-to-finish for large companies that want to operate in China but don’t want to manage the logistics. 

Essentially, Baozun puts e-commerce platforms together and gets them in front of consumers through localized marketing campaigns. From there, companies ship products directly to buyers in what is often described as a completely seamless process. 

Baozun has demonstrated its strong growth potential. In fiscal 2019, revenue went up by 35 percent, and gross merchandise value (GMV) increased by 51 percent.

That growth continued in the first nine months of fiscal 2020, perhaps spurred on by brick-and-mortar restrictions in place due to the pandemic.

Analysts project another 32 percent rise in revenue for fiscal 2021. Better still, earnings are expected to grow by 30 percent in fiscal 2021, which is likely to translate into shareholder returns. 

The only area of concern is ongoing trade-related tension between the United States and China. This could lead to unpredicted outcomes that impact stock prices. It seems, generally speaking, that the current administration is inclined to take a measured approach to trade relations.

How the situation ultimately unfolds remains to be seen, and US holders of Chinese stock are on the edge of their seats. 

DraftKings & Twitch Rely on Paysafe

The concept behind Paysafe is everything you would expect in innovative digital technology. It is an advanced iGaming and payments processing platform that has thus far been quite profitable.

Paysafe has an international presence, connecting consumers and merchants through a digital payment network. The platform offers digital wallets and advanced online cash options like Paysafecash and Paysafecard. 

Paysafe facilitated $92 billion in payments over the course of 2020, and the company employs roughly 3,400 people in 12 offices around the world. The platform supports more than 40 unique currencies, making it a popular choice across borders. 

Special Purpose Acquisition Companies (SPACs) are all the rage on Wall Street today. They give high-potential startups a safe space in which to become established.

Paysafe, backed by SPAC Foley Trasimene Acquisition II, started trading under its new ticker on March 31, 2021. 

Everyone expected a dramatic debut with share prices hitting $25 or more, but the launch was something of a disappointment.

In its first days of trading, Paysafe stock has been trending in a decidedly downward manner. However, that doesn’t mean it should be ignored.

A number of analysts agree that investors who are willing to be patient can get these shares at bargain prices now, then enjoy the ride as stocks realize substantial gains in coming years. 

Stocks That Could Be the Next Shopify: The Bottom Line 

It’s unlikely that Shopify is going anywhere except up. It’s got a solid consumer base, and it is still growing. However, Shopify isn’t the only game in town for investors who want to get on board with companies who stand to gain from increased e-commerce. These three stocks could be the next Shopify – at least from the perspective of shareholder returns. 

Coupang offers exposure to the South Korean e-commerce market with a platform that is branching out and diversifying. Baozun has made itself indispensable to international retailers who want to do business in China.

Finally, Paysafe is expanding its global footprint, and it has more power than ever with its new presence in the market. It might not be a winner out of the gate from a stock price perspective, but most believe that state is just temporary. 

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.