This Stock Could Hand You 200% Profits in as Little as 18 Months

When it comes to investing in e-commerce, most people think about Amazon.com Inc. (NASDAQ: AMZN) and pretty much leave it at that.

Don’t get me wrong; I’m in no way backing off my bullish belief in Amazon.

After all, we recently had a conversation about the potential double ahead for the King of E-Commerce.

The point of today’s chat is to show you how much money you can make by finding a great backend play on a booming sector like e-commerce.

It’s even better if the firm in mind is a high-growth outfit that flies under Wall Street’s radar. That way, you can get in before the so-called “smart money” shows up, and pile up even more profits.

And that’s the exact setup we find with a company I refer to as “Amazon’s Hidden Supercharger.” Most folks haven’t heard about it, giving us the perfect chance to get in before Wall Street does.

Since Feb. 2, 2016, when it hit a post-IPO low, up until Feb. 4 of this year, this stock has gone up 2,409%.

That’s the equivalent of turning $10,000 into $251,000 in four years.

Now, this stock could hand you 200% profits in as little as 18 months…

Third-Party Support for the E-Commerce King

There’s no getting around that retail continues to shift away from physical stores and malls.

For tech investors, this is a very profitable trend that will continue for years to come.

A recent market outlook from Statista notes that online sales will rise by 58% from 2017 through 2023. They’ll have risen from $468 billion to $740 billion.

Now boasting a $1 trillion market cap, Amazon is set to dominate the U.S. market over the long haul. We have impressive financial results to bear that out. It brings in close to $70 billion in sales every quarter.

In last year’s fourth quarter alone, Amazon crushed on earnings, beating forecasts by 59.7%. Sales of $87.4 billion also beat Wall Street’s expectations.

Here’s the thing. As powerful as Amazon is, it can’t handle the millions of transactions it conducts every day all on its own.

That’s why it quietly launched a program several years ago that lets third-party vendors sell their products on Amazon’s website. That move has turned out to be a huge win.

Consider that the percentage of third-party sellers has more than doubled in about 12 years. It was just 26% back in 2007. But in last year’s second quarter, the last period for full data, that figure came in at 54%.

Amazon CEO Jeff Bezos hit on a key fact facing companies all over the United States – most firms don’t have the talent or the cash to build a winning website. Now, plugging into Amazon’s sprawling platform isn’t exactly easy either.

You don’t have to take my word for it. The Wall Street Journal has likened the reseller program to the stock market’s own complicated system, complete with the use of very sophisticated computer coding and artificial intelligence algorithms.

Enter the Hidden Supercharger: Amazon’s Vital Supporter

Thanks to Amazon’s Hidden Supercharger, Canada-based Shopify Inc. (NYSE: SHOP), e-tailers are provided with sophisticated software that allows them to plug into Amazon, manage orders, collect payments, and send out e-mails to buyers.

But wait, there’s more. It also helps them build their own online sites, handle multiple sales channels, and plug into social media. The idea is to ramp up sales by giving buyers a great shopping experience.

Shopify hosts software in the cloud that merchants use to run their business across all their sales channels. These include web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces.

It’s no wonder that Shopify has been on a roll for several years now. Ironically, though it has made fortunes for its investors, most folks have never heard of the company.

That’s fine with us. We know from experience that getting in front of Wall Street and Big Media can hand us a huge payday.

That means finding a hot stock that’s still flying under the radar or buying into a company with amazing prospects before it potentially even goes public in the first place.

But whether it’s pre-IPO private investing or hidden gems in the stock market, the key is finding a disruptive company that fits right into a high-demand niche.

Shopify really proves my point here several times over. Amazon’s Hidden Supercharger has become an integral part of the King of E-Commerce’s success.

High tech is the one place in the United States where investors can regularly find a handful of stocks that can turn them into millionaires in a relatively short time frame.

SHOP is a classic example. It had its initial public offering (IPO) on May 26, 2015. Following my rule of avoiding these stocks for the first six months that they trade, this play had the kind of growth that can create a small fortune in less than five years.

The stock hit its post-IPO low on Feb. 8, 2016, when it closed at $19.33. Since then, it’s scored gains of 2,409%.

As I mentioned earlier, those are the kind of gains that can turn just $10,000 into $251,000 in less than five years.

But don’t worry. I still see a lot of upside ahead…

Money-Doubling Growth

Talk about a fast mover. Last year, SHOP had $41.5 billion in gross merchandise volume through its channels. That’s compared to just $750 million back in 2012.

That big move translates into massive sales growth. Shopify had a mere $23 million in sales for 2012. But by 2018, that figure had soared to nearly $1.1 billion, an increase of an amazing 4,772%.

That kind of success has translated into massive profits for savvy tech investors. But I believe the stock’s climb is far from over. Yes, earnings have been off lately, but the long-term track record here is great.

During the past three years, SHOP has averaged per-share earnings gains of 55%. That means it is doubling roughly every 15 months.

Remember, stock prices tend to follow earnings growth. So, we could easily forecast two doubles in the next three years. But to be conservative, let’s double that to say six years.

At that rate, our original $10,000 would be worth $1,000,000.

By contrast, that same amounted invested in the S&P 500 would be worth $13,500.

Like I keep saying, if you want to become a millionaire from the stock market, you absolutely have to grab hold of tech leaders like Shopify.

In other words, stocks like SHOP are drag cars on the high-tech road to wealth.

— Michael A. Robinson

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Source: Money Morning