Shopify Inc. (SHOP): The Canadian Stock to Watch in 2025?

As we step into 2025, investors are eager to identify the top-performing Canadian stocks that will drive their portfolios to new heights. One name that consistently pops up in discussions is Shopify Inc. (SHOP), the Ottawa-based e-commerce giant that has been making waves in the tech industry. But is Shopify truly the best-performing Canadian stock in 2025, and should you consider adding it to your portfolio? Let's dive into the data and find out.

Shopify's impressive growth trajectory in 2025 can be attributed to several key factors. Firstly, the company's international expansion, particularly in Europe, has driven significant growth. In the third quarter of 2024, GMV in Europe rose over 35%, contributing to the company's overall growth. This expansion strategy is sustainable as it taps into the growing e-commerce market in these regions.

Secondly, Shopify's success in onboarding large global brands and enterprise clients has fueled its growth. The company has made significant inroads in the enterprise segment, with notable clients such as Reebok, Off-White, and Victoria's Secret. This growth is sustainable as more large-scale businesses adopt Shopify's platform for its scalability and customization options.



Another critical factor driving Shopify's growth is its integration of AI-powered features and automation tools. These innovations have enhanced the platform's capabilities and user experience, making it more attractive to merchants and consumers alike. This trend is sustainable as AI continues to advance and become more accessible, allowing Shopify to innovate and stay ahead of competitors.

Shopify's financial services expansion, including Shopify Payments and Shopify Capital, has also driven recurring revenue and improved merchant retention. This growth is sustainable as more merchants adopt these services for their convenience and flexibility.

While Shopify's growth trajectory is impressive, it is essential to consider the broader market context. The S&P/TSX Composite Index, which includes many of Canada's largest and most successful companies, had a total return of 27.53% over the past 12 months as of January 2025. Shopify's total return of 3.42% over the same period is lower, but it is crucial to remember that Shopify's stock price has been more volatile and has experienced significant growth in previous years.

In conclusion, Shopify Inc. (SHOP) has demonstrated exceptional growth in 2025, driven by factors such as international expansion, enterprise segment growth, AI integration, and financial services expansion. While its total return over the past 12 months may not be as high as some other Canadian stocks, Shopify's long-term growth potential remains significant. As an investor, you should consider adding Shopify to your portfolio, but be prepared for its volatility and ensure it aligns with your investment goals and risk tolerance.