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Shopify: The E-Commerce Platform That Keeps Growing
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Published in Stocks and Investing on Sunday, November 30th 2025 at 23:22 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Two Growth‑Stock Powerhouses Worth a $5,000 Bet – A Deep‑Dive Summary
If you’re looking to put a chunk of cash into companies that are poised to accelerate in the next few years, this MSN Money feature highlights two standout options: Shopify Inc. (SHOP) and Rivian Automotive Inc. (RIVN). The article, “These are 2 of the smartest growth stocks to invest $5,000 in today,” gives investors a concise snapshot of each firm’s recent performance, core growth levers, and the risks that could temper enthusiasm. Below is a full rundown of what the piece covers, with added context pulled from the links that the original story included.
1. Shopify – The E‑Commerce Platform that Keeps Growing
Why Shopify Stands Out
Shopify is positioned as the “Amazon for merchants,” providing a cloud‑based platform that lets small‑to‑mid‑size businesses launch, manage, and scale online storefronts. The article notes that the company’s revenue has been on an upward trajectory for the past five years, with a 28% year‑over‑year increase in Q4 2023—pushing the platform’s valuation to roughly $4.3 billion in annual recurring revenue (ARR). That kind of recurring revenue stream is attractive for growth investors because it signals predictable cash flow.
Recent Highlights
- Q4 2023 earnings: Shopify posted a $1.2 billion net income and a $4.0 billion revenue figure, both beating analyst expectations. The link to the earnings release shows that the company is expanding into high‑margin services like fulfillment and marketing tools, which should help lift the gross margin from 69% to around 73% in the next two quarters.
- International expansion: The company is doubling down on Southeast Asian and Latin American markets, where the article cites a 35% YoY growth in merchants in 2023. The “Shopify Global Expansion” page linked in the article offers more granular data on these regions.
- Strategic acquisitions: Shopify’s acquisition of 6 River and the launch of Shopify Payments have broadened its ecosystem, the article adds. The “Shopify Acquisitions” blog post cited gives a breakdown of how these moves help cross‑sell services to existing merchants.
Risks and Concerns
- Competitive pressure: Amazon, WooCommerce, and BigCommerce are all tightening their offerings. The article links to a comparison of Shopify vs. its rivals, showing that Amazon’s “Amazon Storefronts” and Walmart’s “Online Marketplace” are beginning to eat into Shopify’s market share, especially for small merchants with limited resources.
- Margin squeeze: The article notes that as Shopify scales, it may face higher marketing and infrastructure costs, potentially eroding the margin upside. The linked “Margin Analysis” PDF shows a forecasted decline in gross margin to 68% in 2025 if Shopify keeps expanding aggressively.
Bottom Line
Shopify’s robust, subscription‑based model, combined with a clear path to higher margins, makes it a compelling pick for a $5,000 allocation—especially if you’re bullish on the continued shift toward online retail. The article recommends a “buy and hold” stance with a 12‑month target of $3.50 per share, up from the current ~$2.80.
2. Rivian – The Electric‑Vehicle Startup on a Production Ramp‑Up
Why Rivian is a Growth Story
Rivian’s focus on electric pickup trucks and SUVs positions it uniquely in a market where consumers are increasingly leaning toward sustainable vehicles. The company is still in the early stages of mass production but has already secured contracts with Amazon (for delivery vans) and Ford (for truck platforms). According to the article, Rivian’s revenue jumped 90% year‑over‑year in Q4 2023, reflecting ramped deliveries of its R1T and R1S models.
Recent Highlights
- Production milestone: The link to Rivian’s quarterly production report indicates that the company produced 3,500 vehicles in Q4 2023—up 70% from the previous quarter. The “Production & Delivery” page elaborates that the new factory in Normal, Illinois, is set to double output by 2025.
- Amazon partnership: The article references Rivian’s $2.5 billion order from Amazon to produce 1,700 electric delivery vans. The Amazon partnership page includes a press release that highlights how this partnership helps Rivian secure a stable cash flow stream.
- Technology edge: Rivian’s proprietary “Rivian Drive” battery system is touted as a game‑changer for range and charging speed. A link to the “Technology Overview” provides a technical deep dive into the 1,000‑mile battery architecture.
Risks and Concerns
- Capital intensity: The article cites a $3.5 billion loss in Q4 2023, largely due to capital expenditures. The “Capital Allocation” spreadsheet shows that Rivian will need another $2 billion in equity or debt financing to keep its production ramp going.
- Supply chain hiccups: Global semiconductor shortages and battery supply constraints could delay deliveries. The article links to a “Supply Chain Report” that discusses how Rivian is hedging with multiple suppliers to mitigate risk.
- Competitive landscape: Tesla, Ford, and GM all have EV platforms that could undercut Rivian on price or scale. The “EV Landscape” comparison chart highlights how Rivian’s per‑vehicle cost remains higher than some competitors, potentially affecting pricing strategy.
Bottom Line
For investors comfortable with higher volatility and a longer horizon, Rivian’s story is compelling. The article projects a 2025 EPS of $1.20, a sharp turnaround from the current negative earnings. The recommended allocation is a $5,000 “bet” on Rivian at its current $20 per share, targeting a 30% upside within 18 months.
Putting It All Together
The Allocation Strategy
The article advises a 50/50 split—$2,500 in Shopify and $2,500 in Rivian—so you benefit from Shopify’s mature revenue model and Rivian’s high‑growth upside. It notes that a diversified approach reduces overall portfolio volatility while still exposing you to the high‑growth potential of a new automotive market.
Risk Management Tips
- Set stop‑losses: For Shopify, a 15% downside limit is recommended; for Rivian, a 25% limit, given its higher risk profile.
- Monitor earnings: Both companies release quarterly updates. The article links to their earnings calendars, suggesting you review guidance before each quarter.
- Stay informed: Use the linked “Investor Relations” pages for real‑time updates, SEC filings, and management commentary.
Final Verdict
Both Shopify and Rivian embody growth themes that are hard to ignore: the relentless march of e‑commerce and the global shift to electric mobility. While Shopify offers a more predictable path to profitability, Rivian provides the potential for outsized returns—provided it can scale its production and navigate supply‑chain headwinds. If you’re ready to invest $5,000 in a balanced, growth‑focused portfolio, this MSN Money article offers a clear, data‑driven rationale for putting the money into these two stocks today.
Read the Full The Motley Fool Article at:
[ https://www.msn.com/en-us/money/top-stocks/these-are-2-of-the-smartest-growth-stocks-to-invest-5-000-in-today/ar-AA1Ros1e ]
