One standout Canadian company has seen its share price fall by nearly 40% from recent highs — but that doesn’t automatically make it a poor long-term investment. The stock in question is Shopify (TSX: SHOP), a major e-commerce platform provider whose valuation has pulled back sharply after last year’s highs, offering a potential entry point for patient investors willing to look past short-term volatility.

Shopify’s business serves millions of merchants worldwide, providing software tools that power online stores, enable payments, and help small and medium-sized companies sell digitally. Despite the pullback, the company’s long-term growth story remains tied to the global shift toward online commerce, which continues to expand as more businesses move sales online and integrate digital tools into their operations.

One reason the stock has corrected so deeply is valuation compression. Shopify’s shares historically traded at very high multiples because of its rapid revenue growth and large total addressable market. When markets rotate away from high-growth tech names or short-term results disappoint relative to lofty expectations, stocks like this can correct significantly even if fundamentals haven’t deteriorated. That’s where long-term investors sometimes find opportunities: selling pressure that reflects sentiment more than changing business prospects.

For buy-and-hold investors with a multi-year horizon, the key consideration is whether the company’s long-term revenue and earnings potential justifies holding through volatility. Shopify has continued innovating, trimming costs, and refocusing on profitable segments, and its platform remains central for many digital merchants. A deep pullback could therefore be a chance to accumulate shares at a discount — but only for those comfortable with tech sector risk and stock price swings.

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It’s also worth noting that such stocks generally aren’t income plays; they rely on future growth rather than dividends to create returns. Investors should balance exposure with capital they can afford to leave invested for years, not quarters. Long-term holders often weather multiple drawdowns as e-commerce adoption and Shopify’s product ecosystem play out over time.

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In summary, Shopify’s deep discount from past peaks reflects market sentiment and valuation repricing more than a broken business model. For investors who believe in digital commerce growth over the next decade and can tolerate volatility, this type of stock could still fit into a buy-and-hold framework rather than being judged solely on recent price action.