As other businesses have fallen by the wayside during the pandemic, it seems Shopify was defensive action no one saw coming.
The share price is now up about 180% in one year. Since its IPO, this price has been on the rise, increasing 3463% in recent years. So while I wouldn’t necessarily say the time has passed on this stock given its outperformance, maybe it’s time to think outside the box of Shopify.
There are other stocks that are also outperforming the markets during this downturn, and none better than artificial intelligence. What you want is a business that is not afraid to focus on a key market, know it well, and diversify within that market.
Shopify is a great example. The company has focused on e-commerce, but has a number of ways to generate income. From its app, to its subscription services, to shipping and receiving, all of these areas are making revenue while others are down.
This is also true for a company like Real Matters Inc (TSX: REAL). The company operates a platform that connects field agents with information and data about properties. It can be used by everyone from mortgage lenders to insurance companies, which is why the business continues to do well. When one area of the business shrinks, there is another to take it over.
Take the latest income report. The company posted strong earnings in the second quarter as it regained a larger market share in the private sector. There have been huge gains in appraisals and titles income in the United States, generating $ 14.6 million from $ 2.8 million in the same period last year.
And, like Shopify, it appears to be benefiting from the pandemic. The low interest rate environment has created a long-term opportunity for the business as many clients will want to refinance loans during this time. So even if people aren’t doing well financially, now is a great time to refinance during an economic downturn and take advantage of low rates.
At the end of the line
This could be the catalyst for something huge for Real Matters. The company could see an increase similar to Shopify thanks to its adaptability. The stock is already up 138% this year, and that will likely continue to rise as earnings reports come in.
Real Matters could very well turn out to be the company many wish they had bought while still in the double-digit range.
It could very well hit triple digits in the next year or so as markets rebound and the company continues to prove its worth.
But there are even more Shopify-type stocks out there!
This tiny TSX stock could be the next Shopify
A little-known Canadian IPO has doubled in value in just a few months, and famous Canadian stock picker Iain Butler sees a potential millionaire in the wait…
Because he thinks this fast-growing company looks a lot like Shopify, a stock officially recommended by Iain 3 years ago – before it skyrocketed 1211%!
Iain and his team have just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!
Crazy contributor Amy Legate-Wolfe owns stock in Shopify. The Motley Fool owns stocks and recommends Shopify and Shopify.