Bull market could be on the way: I think it’s time to buy Shopify stocks.

Stock indexes have risen sharply since their lows, implying that the next bull market has already begun. Wall Street is ecstatic about the possibility of a hard recession, and some growth stocks have skyrocketed through the first half of 2023. Shopify ($SHOP) is one such growth stock, having nearly doubled in value since early January. However, investors may still see long-term gains by purchasing this market-beating stock now.

Let's look at a few of the reasons why:

Commerce everywhere: Shopify experienced a growth hangover in Q1 2022, but demand trends have stabilized and are on the upswing. Gross merchandise volume increased 18% on a constant-currency basis, while overall revenue jumped 27% due to high demand for subscription services and payment processing. The business is winning in both e-commerce and physical retailing channels, suggesting a long runway for growth. Shopify can build on its 10% market share in the U.S. and use its point-of-sale system to account for more in-person transactions. Shopify's strong first quarter results demonstrate its ability to power businesses of all sizes, regardless of their sales location.

Rising margins: Wall Street is optimistic about Shopify's potential to increase profit margins due to factors like the end of the pandemic and aggressive cost cuts. The majority of these reductions will come from the sale of Shopify's logistics business to Flexport, which should make the company more efficient. This move will give management more flexibility to prioritize higher-return investments. The profitability spike has not yet been visible in the company's results, but investors should monitor operating margin trends over the next year to see if the strategic shift is working.

The price is right: Shopify, an industry-leading stock, is valued at nearly 15 times sales today, up from less than 8 times sales earlier this year. Despite being unprofitable and slowing growth rates due to e-commerce demand trends, the company has a large market share and potential for growth through a larger portfolio of merchant services. Despite its current unprofitability, Shopify's growth potential is significant, and investors should consider its potential for success in the future.

I think profitability is also likely to be much higher in five years than it is today. Given these considerations, the stock appears appealing, even after its recent rally.