Could This $125 Stock Be Your Ticket to Millionaire Status?
Alex Smith
4 hours ago
Investors looking to achieve millionaire status have plenty of options to achieve this goal. There’s real estate, other fixed-income assets, and a plethora of other higher-risk securities that can propel an investor to a seven-digit portfolio.
That said, I prefer to look at top-tier growth stocks as vehicles for true long-term capital appreciation in a given portfolio. Among my leading ideas on this front is e-commerce platform provider Shopify (TSX:SHOP).
Here’s why I think Shopify could continue to be a millionaire-maker stock for investors thinking long term.
Compounding growth expected to continue
Personally, I think one of the most important attributes of investing in long-term growth stocks is finding companies with cash flow growth profiles that have reliably shown significant compounding over time. Shopify certainly hits the nail on the head in this regard.
Indeed, the company’s status as a leading cash generator in the world of e-commerce is notable. Last year alone, the company grew its top line by around 30%, with Q4 growth actually accelerating to the 31% year-over-year level. This growth has come with hefty free cash flow growth, delivering a current free cash flow margin in the mid-teens. That’s something I expect to see continue for some time.
With more than US$2 billion in cash flow generated on roughly US$378 billion in gross merchandise volume, Shopify stands ready to continue to monetize its way to higher margins (and even more cash flow) for investors over the long term.
Structural tailwinds are real
I think the key driver of strong cash flow growth over time will be Shopify’s strong underlying structural tailwinds.
Indeed, global eâcommerce is now measured in the trillions of dollars and continues to take share from offline retail. This trend could accelerate, given the fact that emerging markets are set to continue transitioning toward mobile and social commerce. Shopify has positioned itself as the âdefaultâ commerce stack for everyone from a solo creator to global brands. This is due mainly to the company’s core tools spanning storefronts, payments, logistics, crossâborder selling, and now AIâdriven automation.
As more commerce flows through the platform, Shopify participates twice. Once via highâmargin subscription revenue, and again via merchant solutions like payments and valueâadded services.
Lastly, I think the AI and âagentic commerceâ wave is still in the early innings. On this front, Shopify is building directly into that trend. The company is rolling out AI tools that help merchants create content, optimize pricing, and automate workflows, and it has even enabled purchasing directly through AI assistants like ChatGPT.
So, for those looking to capitalize on what’s set to be some incredible long-term growth, this is a top-tier growth stock I think can provide millionaire status to investors who are willing to put capital to work in this name, and continue adding on dips (such as the one we’ve seen recently).
The post Could This $125 Stock Be Your Ticket to Millionaire Status? appeared first on The Motley Fool Canada.
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More reading
- 2 Stocks That Could Turn $100,000 Into $1 Million
- 3 Canadian Growth Stocks I’d Add to Any TFSA in 2026
- Want $1 Million in Retirement? Invest $50,000 in These 3 Stocks and Wait a Decade
- A Leading Tech Stock to Buy in 2026
- The 2 Best TSX Stocks to Buy Before a Recovery Takes Hold
Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.
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