Shopify (SHOP)

Shopify (SHOP)

Postby winston » Wed Sep 06, 2017 7:39 pm

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A LITTLE-KNOWN LEADER IN ONLINE SHOPPING

Today's chart highlights a "behind the scenes" company riding the e-commerce boom...

E-commerce is rapidly taking over traditional retail market share. In the second quarter, e-commerce sales increased more than 16% from the second quarter of 2016, according to U.S. Census Bureau data.

Online businesses are doing well... but so are the "picks and shovels" businesses that support this broader trend.

For proof, we look at shares of Shopify (SHOP), a Canadian company that provides software for online businesses. Its technology helps them process orders and payments, ship products, and manage inventory, among other services.

Shopify now has more than 500,000 clients – including a growing roster of major companies like Budweiser brewer Anheuser-Busch InBev (BUD) and media giant the New York Times Company (NYT).

As the chart below shows, Shopify's stock has boomed since it started trading in May 2015. Shares are trading at new all-time highs.

E-commerce may be dominating the market – but it can't get far without supporting technology. And this big shift is good news for Shopify...

Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Shopify (SHOP)

Postby winston » Tue Feb 26, 2019 11:18 pm

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THIS COMPANY FUELS THE E-COMMERCE TREND

Today's chart highlights a company supporting a sector-wide boom...

E-commerce has changed the way consumers shop, thanks to unprecedented convenience. Online sellers are doing well...

But so are the companies supporting the e-commerce trend with tools and services. Today's company is a perfect example of a leading "picks and shovels" business...

Shopify (SHOP) is a $20 billion e-commerce platform. It helps businesses process online orders, manage inventory, and more.

More than 500,000 merchants use it – even big names like beer brand Budweiser and chocolatier Nestlé. And serving many online sellers is paying off...

The company surpassed $1 billion in sales last year, jumping 59% from 2017. In fact, no other software as a service ("SaaS") company has reached the billion-dollar milestone at a quicker rate than Shopify.

As you can see in today's chart, shares of SHOP have been on a tear recently. The stock has more than tripled over the past two years, and it just hit a fresh all-time high. Supporting a booming sector is a recipe for big gains, with less risk...

Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Shopify (SHOP)

Postby winston » Fri Dec 27, 2019 9:45 am

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Shopify

Shopify (NYSE:SHOP) is in a class by itself: What other company has taken on Amazon and won?

Shopify provides software services to retailers that want to become online merchants.

Amazon tried to enter this business, but in 2016 the internet giant surrendered and ceded the field to Shopify. Yes, the $45 billion SaaS juggernaut vanquished the $884 billion e-tailing giant.

Consider how vast the market is for internet retail. Shopify recently celebrated its one millionth customer win.

The company has an entire ecosystem of subscribers, and it's still growing (revenue is up 44% year over year).

Shopify is almost as expensive as fast-growing Datadog, with a price-to-sales ratio of almost 32. Yet this high multiple is probably warranted: Shopify enjoys a near-monopoly in what it does, and the company still has a huge runway of growth ahead, with a market opportunity of $70 billion.

Source: Motley Fool
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Re: Shopify (SHOP)

Postby winston » Thu Jan 09, 2020 1:18 pm

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Stocks to Buy: Shopify (SHOP)

Shopify (NYSE:SHOP), what I consider to be one of Canada’s best tech stocks, gained 187% in 2019.

As the e-commerce platform’s stock went higher in 2019, the number of stories that appeared recommending shorting SHOP stock increased dramatically.

Currently, Shopify has 4.72 million shares short, which is a lot until you consider that it only takes two days to cover based on its average daily volume — making a short squeeze very difficult to pull off.

As I stated in November, as long as Shopify’s monthly recurring revenue (MRR) continues to grow by double-digit percentages, it will continue to deserving of a growth-company valuation. MRR grew by 41.4% and 33.8% over the past two years.

More importantly, it took Shopify 19 months to go from 600,000 subscribers to 1 million subscribers. At 25% compound annual growth, Shopify ought to hit 2 million subscribers by the end of 2022.

Another reason to like Shopify’s chances of doubling for a second-consecutive year is that CEO Tobias Lutke doesn’t believe in spending all day and night at work.

“I’m home at 5:30 pm every evening. My job is incredible, but it’s also just a job. Family and personal health rank higher in my priority list,” Lutke tweeted recently.

Source: Investor Place
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Re: Shopify (SHOP)

Postby winston » Wed Jan 15, 2020 9:20 am

'BEHIND THE SCENES' OF THE E-COMMERCE TREND

Shopify (SHOP) is an e-commerce platform for businesses that want to establish an online presence.

It provides back-office services like inventory and order management, as well as shipping and fulfillment.

It now boasts more than 1 million merchants on its platform.

And with so many online shops relying on its services, Shopify is raking in sales...

In the most recent quarter, Shopify reported revenue of more than $390 million, up 45% from the same quarter last year.

As you can see in today's chart, SHOP shares have soared over the past year.

The stock has nearly tripled over that time frame, recently hitting a fresh all-time high.

As long as the e-commerce trend is still going strong, this company will keep supporting it behind the scenes...

Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Shopify (SHOP)

Postby winston » Fri Feb 21, 2020 10:50 pm

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

by Michael A. Robinson

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%.

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




Source: Money Morning

https://dailytradealert.com/2020/02/21/ ... 18-months/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Shopify (SHOP)

Postby winston » Tue Feb 25, 2020 2:31 pm

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Shopify Is Too Big a Gamble With No Margin of Safety

Shopify's slowing revenue growth and nosebleed valuation generates plenty of questions. Avoid this stock.

by MICHAEL WIGGINS DE OLIVEIRA

Shopify (SHOP) has seen its shares appreciate at a breakneck pace, increasing more than 180% this past year alone.

While the company’s narrative is highly alluring, its fundamentals firmly point towards a company with decelerating revenue growth rates and a stock that is clearly overvalued.

With no upside potential left for new shareholders, investors would do well to sidestep this stock now. Here’s why:

A Very Alluring Narrative

Shopify is a leading e-commerce company helping merchants from small entrepreneurs to large brands start and scale their e-tail operations. Shopify has carefully positioned itself with tailwinds at its back as more merchants attempt to grow their online presence, making Shopify's merchants on an aggregated basis the second largest e-commerce retailer in the U.S.

In fact, as of Q4 2019, Shopify held a greater portion of market share of the U.S. retail e-commerce market -- 5.9% -- than eBay (EBAY) - Get Report (5.7%) or Walmart (WMT).

Shopify’s Chief Operating Officer Harley Finkelstein argues that for Shopify to succeed it must go where the customers are: be it online or offline. It plans to do this by offering merchants enhanced point of sale (POS) hardware to make merchant's transaction experience seamless, as well as supporting their shipping needs by offering eligible merchants greater flexibility through diverse shipping profiles and parcel insurance.

Having acquired 6 River Systems for $450 million last year, the AI-powered fulfillment network has gained rapid traction. Nonetheless, Shopify argues that Shopify’s fulfillment network is in the first year of a five-year trajectory to ensure that through its platform merchants are well-positioned to compete on the global stage.

A Dose of Reality

Shopify’s ambitions to grow wallet share from an expanding merchant base is showing no signs of slowing down.

However, its revenue growth rates are clearly showing signs of slowing down. Specifically, after growing its revenues by 59% in 2018 and 47% in 2019, its revenue growth rate is guided towards just 37% for the year ahead.

Valuation - No Margin of Safety

Further complicating the thesis for investors, even if we push aside the evidence that Shopify’s revenue growth rates are slowing down, is what sort of multiple should investors be willing to pay for a company expected to grow at mid-to-high 30%? This is obviously a difficult question to answer, but more than 37 times trailing sales is clearly the wrong multiple.

Furthermore, Shopify has still shown absolutely no path to profitability, despite being a maturing company. Surely this should give investors pause.

Put another way, Shopify claims to be investing for rapid growth, yet its revenue growth rates are slowing down. Also, we should bear in mind that over the past three years there has been a clear trend that Shopify's gross profit margins are compressing, with Q4 2019 marking the lowest gross profit margins over the past ten consecutive quarters. This is not aligned with the narrative of an asset-light operation.

The Bottom Line

Shopify is going to great lengths to take market share in a growing total addressable market for e-commerce. However, with so much of its best case scenario already priced in many times over, new shareholders are primed for disappointment. Investors considering this stock would do well to revisit it when a cheaper valuation prevails.

Source: The Street, Inc.

https://www.thestreet.com/investing/sho ... yptr=yahoo
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Shopify (SHOP)

Postby winston » Mon Mar 23, 2020 11:46 am

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This Stock Looks Like a Long-Term Winner

by Laura Hoy

Source: Investor Place

https://dailytradealert.com/2020/03/22/ ... rm-winner/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Shopify (SHOP)

Postby winston » Thu Apr 23, 2020 7:42 pm

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WITH STORES CLOSED, EVEN MORE SHOPPING MOVES ONLINE

E-commerce has quickly become more important than ever... And today's company reaps the benefits...

To contain the coronavirus outbreak, "nonessential" businesses around the world have closed down. That includes most small retailers, like clothing boutiques and independent bookshops. In response to the shutdowns, businesses and customers have turned to the Internet. That's where this company comes in...

Shopify (SHOP) is a $70 billion e-commerce platform that serves more than 1 million merchants. It provides the software that businesses need to sell their products online in exchange for a monthly fee and a cut of the store's revenues.

With so many businesses abruptly pushed online-only, Shopify CEO Jean-Michel Lemieux said last week that the company is seeing thousands of new customers and "Black Friday level traffic every day."

SHOP shares have soared about 170% over the past year and recently hit a new all-time high. The world's shopping was moving online long before the coronavirus, but the outbreak has accelerated this trend...

Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Shopify (SHOP)

Postby winston » Thu Aug 20, 2020 8:42 pm

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Warning: This is a Great Company, But a Bad Investment Right Now

by Jody Chudley

While the world-class FAANG companies are all valued at under 10 times their sales, Shopify is valued at 55 times its sales.

That means Shopify is valued…
1. 10 times richer than Amazon
2. Eight times richer than Apple and Alphabet
3. 5.5 times richer than Facebook and Netflix.

Shopify is a great company – but its bad valuation makes it a bad investment.


Source: Wealthy Retirement

https://dailytradealert.com/2020/08/20/ ... right-now/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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