2 Stocks That Could Be Worth More Than Shopify by 2030

The most realistic picks for stocks that could be worth more than Shopify by 2030 are large caps that only have to grow by a reasonable multiple to reach that size.

| More on:
profit rises over time

Source: Getty Images

Even though it’s currently a fraction of its former self, Shopify has set the benchmark for growth for a tech giant in Canada. It dislodged the largest bank in Canada from the position of the most valuable company in Canada, which is something it has maintained for years.

While there are stocks that might be able to push past Shopify by the end of this decade if they experience explosive growth, few stocks have a realistic chance of doing that.

They are blue-chip stocks with a market capitalization that is already modestly close to Shopify and a performance history that endorses their potential to reach the current Shopify valuation.

An information conglomerate

Thomson Reuters (TSX:TRI) has been in the information business since its inception, one way or another. One of the companies that made up this original conglomerate transmitted stock prices from different exchanges via telegraph in the 1850s. The other was a newspaper.

As the company entered the modern era, the business model changed. It started offering a range of professional services and tools to a handful of industries. However, information has remained at the company’s core.

This is also evident in the company’s current direction: artificial intelligence (AI). The company has integrated AI into many of its tools and services and offerings. It’s also making substantial AI-related investments. The fact that it’s already a trusted name in information makes it even more promising as an “AI-oriented” stock (even though it’s not a pure-breed AI stock).

The current direction the company is going in can help it grow at a far more accelerated pace than its current one. However, even if the company sticks to its current growth pace and grows just as much in the next five years (148%) as it did in the last five years, it would be worth more than Shopify.

A tech stock

If there is one tech stock that is ideally positioned to become more valuable then Shopify compared to all others (especially in a relatively short amount of time), it’s Constellation Software (TSX:CSU). There are two reasons.

One is that it already has a sizable market value of $90 billion. And secondly, its growth rate has been far more consistent and explosive than almost all other stocks in the tech sector.

Even if it manages to replicate its five-year growth of 233% in the next five years, it will be ahead of Shopify’s current market value if its growth gets accelerated and closer to its long-term growth pace (1,200% in the last 10 years).

Constellation has a fair chance of outpacing Shopify’s market value, even if the e-commerce stock keeps growing at a decent pace.

Foolish takeaway

These two stocks have a reasonable chance of growing past Shopify stock’s current valuation or even its increased valuation, assuming it maintains its modest growth pace. However, if Shopify starts increasing at a pace that it did in the early days, the gap would be too wide for these or most other stocks to cover.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

More on Investing

think thought consider
Investing

Should You Buy Couche-Tard Stock Aggressively Before Nov. 25?

Here’s what could help Couche-Tard stock rebound after its upcoming earnings event.

Read more »

calculate and analyze stock
Bank Stocks

4% Dividend Yield? I Keep Buying This Dividend Stock in Bulk!

If you find the perfect dividend stock, you never have to worry about investing again. And that's what you get…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

Should You Buy the 3 Highest-Paying Dividend Stocks in Canada?

A few dividend stocks saw a sharp correction in November, increasing their yields. Are they a buy for high dividends?

Read more »

oil and natural gas
Investing

Is Imperial Oil Stock a Buy for its 2.3% Dividend Yield?

Imperial Oil (TSX:IMO) stock: A century of dividends, 30 years of growth, and a 2.3% yield that could evolve into…

Read more »

Paper Canadian currency of various denominations
Stock Market

3 No-Brainer Stocks to Buy Right Now for Less Than $120

Here are three undervalued TSX stocks that are positioned to deliver outsized gains to shareholders over the next 12 months.

Read more »

Man holds Canadian dollars in differing amounts
Investing

Have $500? 3 Absurdly Cheap Stocks Long-term Investors Should Buy Right Now

These three cheap stocks offer excellent buying opportunities for long-term investors.

Read more »

money while you sleep
Dividend Stocks

Buy These 2 High-Yield Dividend Stocks Today and Sleep Soundly for a Decade

These stocks pay attractive dividends that should continue to grow.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

$15,000 Windfall? This Dividend Stock Is the Perfect Buy for Monthly Passive Income

If you get a windfall, after debt investing should be your next top option to create even more passive income!

Read more »