It can be no surprise that such an instant and dramatic change to the business landscape, via COVID-19, has caused certain firms to thrive while others sink. In addition to companies struggling to survive, people have struggled to make do: lost jobs, cut wages and unexpected expenses. This is not a reality for the companies that have best positioned themselves to thrive, whether by business genius or by pure luck. While Amazon has been under heat for making its investors wealthier while workers in the economy struggle, the same exists in Canada.
Shopify offered its shares publicly for the first time in 2015 at a price of $28 per share. Today one share of the company costs $1,371.56 (as of October 4th, 2020). When concern over COVID-19 materialized for the global economy, Shopify saw its share price fall from $543.23 in February 2020 to $322.29 in March. The market sell-off across the world’s largest market hit Shopify like it did many other companies. While some firms have recovered only slightly, and most not at all, e-commerce companies like Shopify and Amazon have more than thrived. Its price in October 2020 is not far at all from its 52-week high of $1,502.00.
Despite even the tumultuous economic landscape caused by COVID-19, Shopify has done incredibly well for its investors. A mere $10,000 investment in Shopify’s IPO in 2015 would be worth $489,646.92 today. Of course, this means tremendous gains in wealth for those who have held Shopify’s stock since its early days, including Shopify Founder and CEO, Tobias Lütke. With a net worth of around $7.8 billion, Lütke has joined the ranks of elite business leaders in Canada. While his wealth and Shopify’s revenues are a far cry from Jeff Bezos and Amazon, it’s still an incredible achievement for a Canadian firm.
