Is Shopify Inc (NYSE: SHOP) A Growth Stock In Spite Of Its High EV/Sales? Firstly, the company’s merchant numbers are on a growth trajectory. While announcing Q3 results, the company CEO Tobi Lutke stated that they had hit 1 million merchants. He termed this performance as mind-blowing. This points to the platform’s growing adoption in the market.

On top of that, while the company’s revenue growth has slowed down, the company’s monthly recurring revenue (MRR) was still on a steady growth path. This rate stands for the number of merchants multiplied by monthly subscriptions.  It indicates growth in user engagement on the platform. Quantifying it, the numbers have been on a growth path. The figures now stand at $50.7 million, up from $37.9 million. This represents a 33.8% increase, which is a healthy increase over the year.  

The company is also continually investing in new technologies that will make the user experience even better. A month ago, the company started the rollout of 3D modeling and native video functionalities.  The goal is to enhance the user experience, and help merchants in converting potential clients into actual clients.

Looking at the chart below, SHOP continues to show signs of positive growth in value. In Tuesday’s session, the stock closed the day with gains of 6.03%.  Volumes were quite high too and hit 2.88 million in the day.

About Shopify Inc

Shopify Inc is a cloud-based commerce platform for SMEs in the U.S.A and across the world. The company has its headquarters in Ottawa, Canada.