1 Beaten-Down Stock to Buy and Hold for a Decade

The article argues that Shopify remains a compelling long-term buy despite valuation worries and fears that AI could disrupt software vendors. Shopify’s latest quarter showed strong momentum: revenue rose 34% year over year to $3.6 billion, operating income increased 68% to $488 million, and free cash flow climbed 55% to $654 million with an 18% margin. Management also guided for low-30% revenue growth in Q3. The piece highlights that Shopify is not being displaced by AI; instead, it is integrating AI-powered tools such as Shopify Catalog and a fast store builder to help merchants improve discovery and sales. The author concludes that Shopify still has significant room to grow as e-commerce remains under 20% of U.S. retail transactions, and that the stock’s premium valuation may be justified by its improving business and large addressable market.