Merakyat.org – The digital era has witnessed a significant surge in the adoption of online services, especially post-pandemic. As businesses and individuals increasingly rely on digital solutions, internet companies are broadening their horizons to cater to this growing demand. This article delves into the performance of three internet giants – Stitch Fix, Inc. (SFIX), Shutterstock, Inc. (SSTK), and Upwork Inc. (UPWK) – and how they are outpacing Shopify Inc. (SHOP).
As we stepped into the third quarter of 2023, a staggering 5.19 billion people, or 64.4% of the global populace, were internet users. The rapid proliferation of 5G connections, expected to cross 1.90 billion by year-end, further underscores the digital revolution. Governments worldwide are also playing their part. For instance, the Broadband Equity, Access, and Development Program, backed by a whopping $42.54 billion from President Biden’s Bipartisan Infrastructure law, aims to democratize internet access.
Despite Shopify’s impressive Q2 earnings, where it reported a 30.8% YoY rise in revenues, reaching $1.69 billion, and a 26.9% YoY growth in adjusted gross profit, the company’s stock has seen a 15% dip in the past three months. This decline is attributed to fierce competition and an uncertain macroeconomic landscape.
In contrast, Stitch Fix, a fashion e-commerce platform, has shown promise with a consistent revenue growth of 6% CAGR over the past five years. Shutterstock, a global provider of high-quality content, recently fortified its position by partnering with OpenAI and acquiring GIPHY, Inc. Lastly, Upwork, a global freelancing platform, has expanded its AI offerings and collaborated with OpenAI to introduce OpenAI Experts on Upwork.
While Shopify remains a formidable player in the e-commerce space, investors might want to keep an eye on SFIX, SSTK, and UPWK, given their current trajectory and potential for growth.