The cloud-based e-commerce platform Shopify (NYSE:SHOP) never ceases to amaze. In just 16 months during the pandemic, its total merchant’s gross merchandise volume (GMV) for SHOP stock has doubled from $200 billion to $400 billion.

It has been the go-to platform for small businesses transitioning to an online model — which has helped supercharge its growth.

With the pandemic-tailwinds fading, Shopify and SHOP stock will now expand at a more sustainable growth trajectory.

Naturally, with its unbelievable financial performance in the past year, SHOP stock has been yielding some impressive returns.

One-year returns for the stock are over 50% which comfortably eclipse those from the S&P 500. Its run-up in value has slowed down lately, but it is still performing remarkably well compared to the market.

Though it trades at a lofty valuation, its price metrics are in line or more attractive than its peers. Hence, with such an incredible performance in the past year, and more upside ahead, SHOP stock is a strong buy.

Retail Market Is Resetting

Shopify grew its sales by 46% to $1.1 billion in the third-quarter. Its merchant and subscription solutions gained 51% and 37% year-over-year respectively during the quarter. Moreover, its GMV also increased to almost $42 billion, representing a 35% increase from last year.

However, its GMV came in below analyst expectations of $43.4 billion and has slowed down considerably from the 114% increase in the first quarter.

The market seems to be resetting itself after the one-off effect of the pandemic on the online retail market. Last year, Shopify generated $2.93 billion in revenues, which represented an increase of 86% from the prior-year period.

It also posted an annual operating profit of $90 million, which was a first in its illustrious history.

The company has done exceedingly well to handle the supply chain disruptions and recent iOS updates. Its third-quarter results show that its growth flywheel is intact, and it has multiple catalysts which can drive the next leg of expansion.

Broadening Its Horizons

Shopify has consistently followed the latest trends in the market. In the third-quarter, it announced the launch of a new centralized platform called Shopify Markets in facilitating cross-border access for merchants.

This is similar to what Amazon (NASDAQ:AMZN) has been doing with its platform, which facilitates international shipping wherever possible.

Furthermore, in driving social commerce sales, the company recently expanded its TikTok partnership. Users can now organically discover products along with shopping tabs that are linked to a merchant’s store. The development won over the market, as the SHOP stock shot up 7% on the release day.

Though Shopify’s management hasn’t provided any specific guidance for the upcoming quarter, the platform is likely to continue growing in a normalized fashion.

Nevertheless, there are tremendous opportunities ahead that will accelerate its top and bottom-line expansion.

Shopify estimates that a whopping $25 billion could be made from Livestream shopping events by 2023. Moreover, Click-and-collect commerce revenues are expected to rise to $64 billion this year.

Though the management hasn’t commented on its fourth-quarter performance, it is likely to be the best quarter of the year. Hence, its full-year operating income forecast should go past the record $437 million it posted last year.

Bottom Line on SHOP Stock

Shopify has had a phenomenal run in the past year but seems to be slowing down as we inch closer to a post-pandemic reality.

However, that shouldn’t be a deterrent in investing in SHOP stock which will continue to perform exceptionally for the foreseeable future.

It is investing in new areas which are likely to drive the next era of growth for the company. Hence, SHOP stock remains a top pick in the e-commerce realm.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.