Online selling platform Shopify (NYSE: SHOP) outpaced the market last month by gaining 11% compared to a 1.8% boost in the S&P 500, according to data provided by S&P Global Market Intelligence.
Continue Reading Below
The rally added to a good year for Shopify investors. The volatile stock is up close to 50% with just a few weeks left in 2018.
Shopify's November jump wasn't tied to any company-specific news. Instead, the stock got caught up in the volatility in the wider tech world last month. The rapidly shifting investor sentiment produced a few sharp sell-offs during the month, but Shopify ultimately recovered along with the broader tech segment.
Shopify's most recent earnings report, in late October, showed that its platform has plenty of room for growth as more retailing spending moves online. Sales jumped 58% and the company moved $10 billion worth of products through its platform.
The fourth quarter represents a seasonally strong period for the company, and CEO Tobias Lutke and his team are predicting sales to range between $315 million and $325 million compared to the prior quarter's $270 million. Given its focus on growth today, that result would still translate into an operating loss for the year, but Shopify is happy to book red ink today in exchange for firming up its market position in this massive industry.
Find out why Shopify is one of the 10 best stocks to buy now
Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. (In fact, the newsletter they run, Motley Fool Stock Advisor, has tripled the market!*)
Tom and David just revealed their ten top stock picks for investors to buy right now. Shopify is on the list -- but there are nine others you may be overlooking.
*Stock Advisor returns as of November 14, 2018