Shopify (NYSE: SHOP) stock has given up several years of gains in just a few painful months this year. Shopify has been growing at a 53% compound annual growth rate since mid-2019, yet those massive gains are slowing. Management says this growth rate is far below its projections from early 2022, mainly because consumers have pivoted back toward normal spending patterns rather than continuing to favor e-commerce as they did during earlier phases of the pandemic.
October conjures visions of haunted houses, ghostly apparitions, and leering jack-o'-lanterns. The S&P 500 is down 24% from its high, and the Nasdaq Composite is down 33%, putting both indexes in the jaws of a bear market. High-quality companies like Shopify (NYSE: SHOP) and PayPal Holdings (NASDAQ: PYPL) have seen their stock prices fall into bargain territory, creating an excellent buying opportunity for patient investors.
Shares of e-commerce platform provider Shopify (NYSE: SHOP) rose as much as 3.2%, semiconductor specialist Nvidia (NASDAQ: NVDA) jumped as much as 3.7%, and streaming video pioneer Roku (NASDAQ: ROKU) surged as much as 4.3%. The latest report on manufacturing data provided investors with the excuse they were looking for to buy shares of beaten-down technology stocks. The Manufacturing Purchasing Managers Index (PMI) came in at 50.9%, down from 52.8% in August.