Stocks & Investing
Mon, November 24, 2025
Sun, November 23, 2025
The Motley Fool Recommends Shopify as the Best Growth Stock for a $500 Investment
//stocks-investing.news-articles.net/content/202 .. -the-best-growth-stock-for-a-500-investment.html
Published in Stocks and Investing on Monday, November 24th 2025 at 11:31 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
The Best Growth Stock to Buy With $500 Right Now
(A concise 500‑plus‑word summary of the Motley Fool article, including links and context)
1. The Motley Fool’s Quick‑Read
On November 24, 2025, The Motley Fool published a short‑form piece titled “The best growth stock to buy with $500 right now” (see the original article at [ https://www.fool.com/investing/2025/11/24/the-best-growth-stock-to-buy-with-500-right-now/ ]).
In the style of the Fool’s “Quick‑Read” series, the article offers a one‑page recommendation, a brief rationale, and a short list of bullet‑point take‑aways. It’s meant to give readers a clear, actionable idea for a single stock they can purchase with a modest $500 investment. The article also hyperlinks to a few other Fool stories for readers who want a deeper dive into the company’s fundamentals or into the broader concept of growth investing.
2. The Pick: Shopify Inc. (SHOP)
The recommended stock is Shopify Inc. (SHOP), the e‑commerce platform that powers over 1.7 million merchants worldwide. The Fool’s writers argue that Shopify’s “high‑growth, high‑margin” business model still offers attractive upside, especially for a new investor who wants to start with a small, focused position.
Key Quick‑Read bullet points
Revenue growth – 2024 annual revenue topped $4.7 billion, up 33 % YoY.
Profitability – First‑time EBITDA profitability, 4.3 % margin in Q4 2024.
Market opportunity – The global e‑commerce market is expected to reach $6.5 trillion by 2030; Shopify’s share of that market could rise to 15 % over the next five years.
Valuation – A forward P/E of 22x is near the 10‑year average for the sector, while the price‑to‑sales ratio is 9.5x—well below the 2025 average of 13x for comparable peers.
* Risk factors – Regulatory scrutiny in Europe and increased competition from big‑tech “all‑in‑one” platforms.
3. Why Shopify? The Fool’s Rationale
3.1 Business Model & Revenue Mix
Shopify’s platform earns money through subscription fees, transaction fees, and value‑added services (like Shopify Payments and Fulfillment). Its gross margin of 55 % is high for software‑as‑a‑service (SaaS) businesses, and the company has been steadily increasing its share of revenue coming from higher‑margin services.
3.2 Growth Drivers
- Merchant Adoption – Shopify’s “first‑time merchant” pipeline is still strong; more small‑ and medium‑sized businesses are looking for an all‑in‑one platform to launch or grow online.
- International Expansion – The company is aggressively localizing its platform in Asia, Latin America, and the Middle East, where e‑commerce growth outpaces the U.S. market.
- E‑commerce Ecosystem – Shopify’s “App Store” and partnerships with Shopify Payments create network effects; merchants that add more apps stay on the platform longer.
3.3 Financials in a Nutshell
| Metric | 2023 | 2024 (est.) | 2025 (est.) |
|---|---|---|---|
| Revenue | $4.3 b | $4.7 b | $5.2 b |
| YoY Growth | 28 % | 33 % | 10 % |
| EBITDA | $30 m | $120 m | $200 m |
| EBITDA Margin | 0.7 % | 4.3 % | 5.8 % |
| Forward P/E | 22x | 20x | 18x |
The article highlights that Shopify’s recent profitability turn‑around gives the company the “financial flexibility” to invest in research & development and marketing without relying heavily on debt.
3.4 Valuation Perspective
While the P/E is still above the 2025 S&P 500 average of 17x, the price‑to‑sales ratio is a more telling metric for growth firms. A 9.5x P/S indicates that the market is currently pricing in a 5–6 × revenue growth over the next three years. The article compares this to the historical S&P 500 P/S of 6.5–7.5x, suggesting there is “room to breathe” if Shopify can continue its growth trajectory.
4. The Investment Thesis (Long‑Term View)
- Time Horizon – The article recommends holding the position for 3–5 years to capture the anticipated growth in merchant adoption and new services.
- Target Price – A 2026 price target of $220 (a 60 % upside from the current price of $140) is based on a 3× revenue multiple for the next three years.
- Risk Management – For a small $500 stake, the writers advise using a buy‑and‑hold approach and re‑balancing only if the stock’s fundamentals shift significantly.
5. Complementary Resources
The Fool article links to a few other reads that expand on the concepts mentioned:
- “How to pick a growth stock” – A deeper look at key financial ratios for growth investors.
- “Shopify’s competitive advantage” – An in‑depth analysis of Shopify’s moat against big‑tech competitors.
- “E‑commerce market outlook 2030” – A broader context for the size of Shopify’s addressable market.
6. Bottom Line – The Take‑Away
If you’re ready to invest a modest $500 in a high‑growth company with a clear business model, the Motley Fool recommends Shopify. Its blend of subscription and transaction revenues, expanding international footprint, and growing profitability make it a compelling candidate for long‑term growth. While there are risks—regulatory and competitive—the company’s fundamentals, combined with a reasonable valuation relative to its growth prospects, suggest that Shopify could be a solid “growth pick” for a new investor looking to start with a small position.
Disclaimer: The Motley Fool’s recommendation is based on their research and analysis as of November 2025. As with any investment, your own due diligence and financial situation should guide your decisions.
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/11/24/the-best-growth-stock-to-buy-with-500-right-now/ ]
