The stock market has whipsawed back and forth to start 2025, and no one knows how the markets will perform the rest of the year. But history is clear: If you regularly buy shares of growing businesses, you’re going to see those investments multiply into much larger sums down the road.
Here are two companies still growing at high rates that are just getting started on tackling their long-term opportunity.
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1. Shopify
Shopify‘s (SHOP -1.60%) business continues to grow at robust rates, as it becomes the go-to e-commerce platform for merchants to build and operate online stores. The stock has returned 3,800% since 2015, yet Shopify’s share of global e-commerce spending is just 12%, leaving a long runway ahead.
When merchants grow their sales, Shopify benefits. Subscriptions to use its online selling tools are just a small part of the company’s revenue. Three-quarters of its revenue comes from merchant solutions, including payment processing, shipping, and other services.
This means when you invest in Shopify, you’re benefiting from the online sales growth of all the businesses that use the platform. Revenue grew 27% year over year in the first quarter. This reflects strong growth in gross merchandise volume across its merchant base, which increased 23% year over year to $74 billion in the quarter.
The speed with which the company introduces new tools for its merchants to adapt to different economic environments is a competitive advantage. For example, its recent tariff guide tool, powered by artificial intelligence, makes it easier for small businesses to manage duty collection on cross-border sales. Management credits this ability to quickly launch new tools as the reason why its merchants have outperformed the broader e-commerce market.
Wall Street is aware of Shopify‘s long-term potential, which is why the stock trades at a high valuation of 15 times trailing revenue. This is below the stock’s average 21 sales multiple in recent years. This growth stock still has a lot to offer patient shareholders over the next few decades.
2. Coupang
Coupang (CPNG 0.71%) looks like an early-stage Amazon. It’s the leading e-commerce brand in South Korea and continues to post double-digit revenue growth as it begins to expand in Taiwan. The stock price has doubled over the past three years and could grow in value for decades to come.
Coupang had over 23 million active customers in the first quarter. This grew 9% year over year in the first quarter, but the company has a huge opportunity to drive more-frequent spending with many of these customers, as it follows Amazon’s playbook of expanding selection and logistics infrastructure.
Revenue grew 21% year over year on a constant-currency basis. It’s seeing strong momentum with sellers taking advantage of its fulfillment services, where volumes are growing much faster than its overall business. Coupang’s Rocket Delivery services, which promise next- or same-day delivery on millions of items, continue to win over customers.
Coupang is bringing in premium brands through its Rocket service, such as Dolce & Gabbana. This suggests it is just tapping into its potential to drive higher spending by its customers. The number of customers purchasing across nine or more categories grew over 25% last quarter, much faster than the growth of its total customer base.
It’s very possible the company is on course to lead e-commerce markets across the Eastern Hemisphere, similar to Amazon’s success in Western countries. Customers are clearly responding to its wide selection, fast shipping, and other benefits like food delivery and digital entertainment through Coupang’s WOW membership program.
The stock just broke to a new 52-week high following its first-quarter earnings results and could have room to run in 2025 and beyond. It trades at a price-to-sales multiple of 1.6, which is fair for a growing e-commerce business.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. John Ballard has positions in Coupang. The Motley Fool has positions in and recommends Amazon and Shopify. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.
