The secret is probably in the margins: If the company succeed at increasing it's very low margins to a certain level, the company will become profitable.
Before going further, let's take a look at the price of the stock over the last 5 years (in canadian dollars):
May 2015: 33,52$
May 2016: 38,47$
May 2017: 124,72$
May 2018: 192$
May 2019: 372$
Late april 2020: 831$
From 2015 to 2019, revenues went from 205 to 1578 million US dollars.
From 2015 to 2019, EPS went from -0,30 US dollar to -1,10US dollars.
Around march 20th, when the panic on the market was at his highest level, I thought about Shopify and I told to myself that tech companies would surely do better than brick and mortar companies over the near future. But, I decided to buy some other tech companies than Shopify. For instance, tech companies that had positive earnings.
Over the last month, while the market went down like crazy, Shopify dropped too. But the rebound has been spectacular: from 500$ a month ago to 831$ today.
I believe that Shopify will probably reach the 1000$ level this year. But I won't probably invest money in that company. Why? Because, at current price, if we suppose that earnings will be 10$ per share in 3 years (let's remind that earnings have been negative over the last 5 years, so I guess I'm very optimist here), the stock would be currently selling for 80 times 2023 earnings.
Too expensive for me. But I guess the stock will continue to do well in the near future anyway. Because my fucking opinion doesn't matter.