Next month marks a significant milestone in the tech industry as Shopify Inc. (NASDAQ: SHOP) will celebrate the 10th anniversary of its initial public offering (IPO) on May 21, 2015. Over the past decade, the Ottawa-based e-commerce platform has not only transformed its own business landscape but has also established itself as Canada’s second-largest company by market capitalization, recently surpassing a remarkable value of $126 billion.

For investors who purchased shares a decade ago, the financial rewards have been nothing short of extraordinary. The extent of these gains, however, may still come as a surprise to many. Back on the date of its IPO, Shopify offered shares at a split-adjusted price of just $1.70, but the actual purchase price for investors was around $2.56 per share. This means that with an initial investment of $1,000, investors would have acquired approximately 390 shares, which have now ballooned in value to over $38,000!

Shopify's impressive ascent can be attributed to its innovative approach in developing a superior e-commerce platform, consistently enhancing its ecosystem to offer robust customer support. A key feature of Shopify’s platform is its no-code functionality, which empowers individuals without any programming skills to create and customize their own e-commerce websites with ease. The emphasis on transaction speed has also been critical, as it minimizes the risk of losing potential sales due to slow or inefficient website performance.

Furthermore, Shopify has cultivated a comprehensive ecosystem designed specifically to assist online merchants in handling essential support tasks. This includes tools for email marketing, social media integration, and payment management, all of which streamline the operations of e-commerce businesses.

As a result of its strategic developments, Shopify experienced a surge in stock prices during the pandemic, driven by a boom in online shopping. However, there were notable challenges as well. The company seemed to overextend itself when it ventured into the shipping and fulfillment sector. This attempt ultimately resulted in substantial losses and a significant decline in the stock price, leading Shopify to divest that segment of its business.

Despite this setback, Shopify has successfully redirected its focus to profitability and is now on a promising growth trajectory once again. Recent reports indicate that the company's net income surged to an impressive $2 billion in 2024, a substantial increase from $132 million the previous year in 2023. Furthermore, revenue projections for the current year suggest an increase in the mid-20s percentage range, which indicates that profits are likely to continue their upward trend.

Although Shopify’s stock is currently trading at over a 40% discount from its all-time high, the company’s positive momentum suggests that those 390 shares could very well be valued significantly higher than $38,000 in the years to come.

Considering an investment in Shopify? It’s essential to weigh your options carefully. The Motley Fool Stock Advisor analyst team has recently spotlighted what they believe are the top 10 stocks for investors to consider, notably excluding Shopify from this select list. The companies that made the cut are expected to yield substantial returns in the future.

For instance, anyone who invested $1,000 in Netflix when it was recommended on December 17, 2004, would now boast a staggering $461,558, and an investment in Nvidia, recommended on April 15, 2005, would have grown to $578,035. It’s worth noting that the Stock Advisor's average return stands at an impressive 730%, far surpassing the S&P 500's 147% during the same period.

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