陈建敏，vancouver, BC 14:50
我错过shopify. 四年前我在工厂有十万加元灯卖不掉。我做了半年网店， 又在eBay 上卖不掉。后来同事开通shopify, 花了几个月。卖不掉。
陈建敏，vancouver, BC 14:53
要是那时候买一万加元shopify 股票， 现在就是40万加元。
Sunday, July 5, 2020
Shopify COO talks strong Q4 earnings, holiday sales and business investments
Here is the article.
Shopify COO Harley Finkelstein sits down with Jim Cramer to talk the holiday quarter and building out the e-commerce platform's fulfillment centers to compete with Amazon and eBay. Shopify collected the big bucks during the holiday shopping season, and that’s indicative of emerging retail trends, Chief Operating Officer Harley Finkelstein told CNBC’s Jim Cramer on Wednesday. The e-commerce platform, which supplies businesses with means to sell products online, recorded almost $3 billion of global sales over the Black Friday to Cyber Monday shopping period last November, a 61% increase from the year prior. “That is the example where direct-to-consumer is no longer a fad,” Finkelstein said in a “Mad Money” interview. “It is now a steady state, and it’s being powered by Shopify. We’re at the center of that.” Direct-to-consumer has emerged as a key retail strategy in the age of online shopping, where brands eliminate the middleman and engage directly with consumers. Nike is one big name that has invested heavily in its direct-sales business, and Tesla Motors is another that has taken advantage of the trend. The holiday numbers are a part of Shopify’s better-than-expected fourth-quarter earnings report. The company grew its top line by 47% year over year to $505.2 million in the December quarter, which smashed the $482.1 million that analysts estimated. On the bottom line, Shopify made 43 cents per share — up more than 80% from a year ago, when analysts were forecasting 24 cents. “We think we can be the entrepreneurship company. While other companies are trying to build empires, we are arming the rebels,” Finkelstein said. “And, honestly, the rebels are winning.” For the full year, Shopify’s gross merchandise volume, which measures the total value of merchandise sold on the website, clocked in at $60.8 billion, a 49% improvement from 2018. The company’s revenue, which is made up of merchant and subscription fees, came in at almost $1.6 billion for the year, a 47% increase. With 2019 earnings coming in at 46 cents per share, Shopify has turned a profit three years in a row. “This is the story of independent brands and entrepreneurs doing really, really well, and consumers are voting with their wallets,” said Finkelstein, who has been second-in-command at the Canadian internet company since 2010. “I think Shopify is powering the entrepreneurship movement.” Shopify is calling 2020 an investment year. The company is injecting money into growing internationally, targeting larger brands with a higher price point called Shopify Plus and building fulfillment centers in the United States, its largest market. Shopify set aside $1 billion to develop its warehouse infrastructure to stay in the game with online retailers such as Amazon and eBay. The warehouses will be outfitted with machine-learning and robotics, powered by its $450 million acquisition of 6 River Systems. “But let’s be clear: We are still in the early stages of that,” Finkelstein explained. “We have to get fulfillment right, because the small businesses and brands ... need to compete with the big businesses, and we think we’re the company that can help them with that.” Shopify shares popped as much as 20% off its earnings report Wednesday morning. The stock would come back down to earth during the trading day before closing at $531.25, up almost 8% from the day prior. The stock has surged more than 33% year to date and more than 202% over the past year.
Shopify COO Harley Finkelstein sits down with Jim Cramer to talk the holiday quarter and building out the e-commerce platform's fulfillment centers to compete with Amazon and eBay. Shopify collected the big bucks during the holiday shopping season, and that’s indicative of emerging retail trends, Chief Operating Officer Harley Finkelstein told CNBC’s Jim Cramer on Wednesday. The e-commerce platform, which supplies businesses with means to sell products online, recorded almost $3 billion of global sales over the Black Friday to Cyber Monday shopping period last November, a 61% increase from the year prior. “That is the example where direct-to-consumer is no longer a fad,” Finkelstein said in a “Mad Money” interview. “It is now a steady state, and it’s being powered by Shopify. We’re at the center of that.” Direct-to-consumer has emerged as a key retail strategy in the age of online shopping, where brands eliminate the middleman and engage directly with consumers. Nike is one big name that has invested heavily in its direct-sales business, and Tesla Motors is another that has taken advantage of the trend. The holiday numbers are a part of Shopify’s better-than-expected fourth-quarter earnings report. The company grew its top line by 47% year over year to $505.2 million in the December quarter, which smashed the $482.1 million that analysts estimated. On the bottom line, Shopify made 43 cents per share — up more than 80% from a year ago, when analysts were forecasting 24 cents. “We think we can be the entrepreneurship company. While other companies are trying to build empires, we are arming the rebels,” Finkelstein said. “And, honestly, the rebels are winning.” For the full year, Shopify’s gross merchandise volume, which measures the total value of merchandise sold on the website, clocked in at $60.8 billion, a 49% improvement from 2018. The company’s revenue, which is made up of merchant and subscription fees, came in at almost $1.6 billion for the year, a 47% increase. With 2019 earnings coming in at 46 cents per share, Shopify has turned a profit three years in a row. “This is the story of independent brands and entrepreneurs doing really, really well, and consumers are voting with their wallets,” said Finkelstein, who has been second-in-command at the Canadian internet company since 2010. “I think Shopify is powering the entrepreneurship movement.” Shopify is calling 2020 an investment year. The company is injecting money into growing internationally, targeting larger brands with a higher price point called Shopify Plus and building fulfillment centers in the United States, its largest market. Shopify set aside $1 billion to develop its warehouse infrastructure to stay in the game with online retailers such as Amazon and eBay. The warehouses will be outfitted with machine-learning and robotics, powered by its $450 million acquisition of 6 River Systems. “But let’s be clear: We are still in the early stages of that,” Finkelstein explained. “We have to get fulfillment right, because the small businesses and brands ... need to compete with the big businesses, and we think we’re the company that can help them with that.” Shopify shares popped as much as 20% off its earnings report Wednesday morning. The stock would come back down to earth during the trading day before closing at $531.25, up almost 8% from the day prior. The stock has surged more than 33% year to date and more than 202% over the past year.
$700 and rising — why investors should stop looking at Shopify stock as a ‘tech darling’
Here is the link.
Financial Post reporter James McLeod talks about Shopify's earnings report and explains what the company's revenue growth means.
This company has a great future and definitely still is today, more than investable. Like anything, wait for at-least a 2-3% pullback which will come. They aren't profitable but clearly the market hasn't given two shits about profitability for the last 10+ years and only cares about future speculation (i.e. Tesla and Amazon). On that front, Shopify has endless future potential and probably one of the most exciting "tech-ish stocks" in the entire world markets. Only time will tell if they can start to compete with Amazon on a logistical, AI and fulfillment process level, but its certainly a stock that will for sure beat Constellation Software on a stock value price (which is in the 1450-1500) mark. If Shopify posts solid to historical earnings as the year progresses, the stock will reach 1000 by year end.
Financial Post reporter James McLeod talks about Shopify's earnings report and explains what the company's revenue growth means.
This company has a great future and definitely still is today, more than investable. Like anything, wait for at-least a 2-3% pullback which will come. They aren't profitable but clearly the market hasn't given two shits about profitability for the last 10+ years and only cares about future speculation (i.e. Tesla and Amazon). On that front, Shopify has endless future potential and probably one of the most exciting "tech-ish stocks" in the entire world markets. Only time will tell if they can start to compete with Amazon on a logistical, AI and fulfillment process level, but its certainly a stock that will for sure beat Constellation Software on a stock value price (which is in the 1450-1500) mark. If Shopify posts solid to historical earnings as the year progresses, the stock will reach 1000 by year end.
What is Shopify?
Here is the link.
Shopify is the leading E-commerce platform in the United States with 23% market share, and has become the second largest platform in terms of total merchandise volume, surpassing Ebay in September 2019 and just behind Amazon--Amazon had $141 B of online store sales last year compared to 61 B of Shopify. But Shopify grew at 49% compared to Amazon's 15% . The company's stock is up more than 20 times its IPO price.
Run by Tobius Lutke, the company CEO, and Harley Finklestein, the COO, Shopify continues to grow by offering a compelling reason to merchants and customers to use its platform. The company allows customers to create their own storefronts, manages payments, and shipping behind the scenes.
Shopify has, also, been getting into drop-shipping with Oberlo and fulfilment centers with 6 River Systems to improve its customer experience. It also uses artificial intelligent in its warehouses to manage inventory. Shopify sells its own chip and card readers as well, and is working hard to democratize commerce for everyone.
Sabr stock: Day trading analysis - add 3 day and 7 day average
July 5, 2020
Introduction
It is better to learn how to day trade Sabr stock since I do not need to invest more capital, and then I can learn how to use those existing $5000 dollar capital to invest into the market. The market value swing most days last two weeks in a day above 5%, and there is $250 dollar range to play.
Add 3 day and 7 day average
Sabr stock: Day trading analysis
July 5, 2020
I invested near $5000 US dollars on Sabr stocks starting from June 5, 2020. Right now my market value has around $700 dollars loss. My plan is to learn how to day trading, sell high and buy low in same day, two days, or up to 5 days.
It is better for me to stay on this stock instead of moving to SHOP.TO stock. It is less risk compared to SHOP.TO.
Introduction
I invested near $5000 US dollars on Sabr stocks starting from June 5, 2020. Right now my market value has around $700 dollars loss. My plan is to learn how to day trading, sell high and buy low in same day, two days, or up to 5 days.
Day trading analysis
It is better for me to stay on this stock instead of moving to SHOP.TO stock. It is less risk compared to SHOP.TO.
Market crash: Caution: The Next Market Crash Could Happen Very, Very Quickly!
Here is the article.
Courtesy of the COVID-19 pandemic and its effects on the economy, the S&P/TSX Composite Index nosedived by 37.43% from its February 2020 peak to bottom out on March 23, 2020.
The market rebounded soon after, since investor panic began to subside, and the sell-off frenzy ended. At writing, the index is back up by more than 37.53%, but its recent rally began showing signs of the recovery slowing down on Tuesday, June 9. The S&P/TSX Composite Index is down by almost 10% from the start of the year. Is this a worrying sign?
Shopify stock: Shopify (TSX:SHOP) Stock: What’s Next After a 141% Rally?
Here is the article.
Shopify (TSX:SHOP)(NYSE:SHOP) stock is on a strong bull run and has surged about 141% this year. The impressive growth in Shopify stock is due to a sharp rise in demand for its offerings. Now that the Shopify stock has rallied so much, you’re probably wondering if you should sell.
Shopify’s top line has grown at a CAGR (compound annual growth rate) of 67% from 2015 to 2019. Meanwhile, in the most recent quarter, its revenues surged 47% year over year. Investors should note that Shopify’s monthly recurring revenues have grown consistently both on a year over year and sequential basis since 2015. Moreover, its monthly recurring revenues have grown at a CAGR of 50%.
Its partnerships with Walmart and Facebook should further amplify the demand for Shopify’s products. Shopify’s Facebook store helps its merchants to display and promote their products on Facebook easily. Meanwhile, customers have the ease of buying and tracking their orders directly in Messenger chat.
Meanwhile, Shopify’s Walmart partnership will allow its merchants access to Walmart’s millions of customers.
The addition of more sales channels should help Shopify in expanding its merchant base. It should give a push to its high-margin solutions like Shopify Capital and shipping.
Shopify stock: think about investing?
July 5, 2020
Here is the article.
Over the past five years, Shopify (TSX:SHOP)(NYSE:SHOP) stock has made many investors wealthy. On its first day of trading, it closed for $34,94. As of this writing, it traded for $1,242. That’s a 3,456% return.
If you’d invested in SHOP on the date of its IPO and held until today, you’d have over $300,000 in the bank. This is easily one of the best returns you could have realized investing in TSX stocks over the past decade. While cannabis stocks also achieved high returns in the early days, their bubble deflated long ago. SHOP, however, is still going strong.
An extremely expensive stock
One fact that could make a bearish case for Shopify is the stock’s valuation. At current prices, SHOP trades at 85 times sales and 47 times book value. These are both extremely high ratios. If Shopify didn’t see any revenue growth, then it would take 85 years to pay for the company out of its own sales. Of course, the company is seeing revenue growth, but the level of growth we’re seeing now won’t last forever. If the company slows down soon, then it’s current valuation will be impossible to justify.
Chipotle-Shopify Tie-Up to Launch Virtual Farmers Market
Here is the article.
Chipotle Mexican Grill, Inc. CMG recently partnered with Shopify Inc. SHOP to launch improved versions of e-commerce sites for its farmers. The move will help farmers in selling meat, dairy and grain products, and other items directly to consumers across the country.
This initiative will be of great help during the coronavirus pandemic as farmers are facing declining demand due to closure of restaurants, hotels and schools. The Chipotle Virtual Farmers' Market will provide Chipotle's suppliers a new stream of revenues.
Chris Brandt, chief marketing officer said “It can be intimidating for many family farms to change the way they do business, so we're giving our suppliers the right tools and resources to successfully launch improved eCommerce platforms.”
Chipotle is helping suppliers in developing their own websites by providing hosting fees on Shopify for two years. Chipotle suppliers like Niman Ranch, Petaluma Creamery, McKaskle Family Farm, and Meister Cheese, which has been working with the company for more than a decade will sell through their own individual digital storefronts.
Digitalization to Drive Growth
Chipotle is prioritizing its e-commerce program to gain customer confidence. The company is aggressively trying to make digital ordering more appealing to customers and more efficient for restaurants, in order to drive digital sales and retain customers during the coronavirus crisis. In the regard, Chipotle has redesigned and simplified its online ordering site, enabled online payment for catering, online meal customizations and collaborated with several well-known third-party providers for delivery. During the first quarter, it also announced a national delivery partnership with Uber Eats.
Another initiative that has been benefiting the company is its rewards program. It has more than 11.5 million enrolled members. Over the past month, daily sign-ups spiked nearly four-fold, which is another sign that the company’s digital platform is gaining traction. Clearly, 65% of newly-enrolled rewards members are new to the Chipotle brand, up from 51% during pre-COVID-19 period. In first-quarter 2020, digital sales grew 81% year over year to $372 million and accounted for 26.3% of sales.
Shares of the company have gained 25.7% year to date, against the industry’s decline of 9.6%.
3 Top Stocks before next lockdown: SHOP, TDOC, NFLX,
Here is the article.
Shopify powers the e-commerce revolution
The most obvious impact of the pandemic was that it accelerated the shift to e-commerce. Consumers began shopping online in lieu of trekking to retail stores. Far too many merchants were ill-prepared for the sudden change in consumer behavior and the groundswell toward online shopping. Luckily for them, Shopify (NYSE:SHOP) was there to answer the call.
Many brick-and-mortar retailers with no online presence were forced to add a digital component to their business on the fly if they wanted to survive. Shopify saw unprecedented demand for its services, which include helping merchants set up and manage e-commerce operations. The company also provides access to other critical business services, including inventory management, payment processing, and discounted shipping and fulfillment.
Shopify was already in an enviable position. Total revenue for 2019 grew 47% year over year, driven by more than 1 million merchants. Fast forward to Q1 and Shopify maintained its impressive growth rate at 47%, even in what has historically been a slower quarter. New stores created on its platform grew 62% between March 13, 2020, and April 24, 2020, compared to the prior six-week period, as merchants scrambled to offer their goods online.
It's unlikely that the majority of retailers will forego these new revenue streams as the momentum from these additional sales carries into the coming quarters. This gives investors a sneak preview into Shopify's future, lockdown or not.
Shopify stock: 3 Top Growth Stocks to Buy Right Now
Here is the article.
Like DocuSign and Zoom, Shopify's (NYSE:SHOP) growth is being fueled by powerful long-term trends. Retail sales are shifting online at an accelerated pace due in part to the COVID-19 crisis. Shopify helps small -- and, increasingly, large -- businesses build and grow their online operations. And it's perfectly positioned to ride the global e-commerce boom.
Shopify's first-quarter revenue surged 47% to $470 million, while its adjusted net income soared 214% to $22 million. Merchants are flocking to Shopify's e-commerce platform, and many are growing their sales at a healthy clip. Shopify's gross merchandise volume -- essentially, the total dollar amount of sales merchants made on its platform -- jumped 46% to $17.4 billion in the first quarter.
A couple of blockbuster deals should help to boost Shopify's growth. In May, Shopify partnered with Facebook (NASDAQ:FB) to help merchants create Facebook Shops, or customized storefronts on the social media titan's namesake platform and Instagram. Shopify will power Facebook's checkout features, and also provide merchants with tools to manage their inventory, orders, and fulfillment.
Shopify also recently formed a partnership with retail colossus Walmart (NYSE:WMT). The deal will let 1,200 of Shopify's highest-performing merchants start selling their wares on Walmart.com. The partnership will help Walmart strengthen its third-party marketplace, while also helping Shopify give its best merchants an even larger market opportunity. If the partnership goes well -- and all signs suggest that it will -- Walmart will likely open up its marketplace to more of Shopify's more than 1 million merchants. That could propel the e-commerce star's stock to even greater heights in the months and years ahead.
Why Shopify Stock Jumped 25.3% in June
Here is the article.
So what - why 25.3% return in June
Walmart is investing to build its online retail business, and bringing products from Shopify stores on to its e-commerce platform could help both companies challenge Amazon.com's dominance in the space. Walmart will feature products from select Shopify-powered businesses directly on its website. The retail giant expects that it will be selling goods from roughly 1,200 Shopify partners by the end of this year.
Getting featured on Walmart.com has the potential to be a big sales driver for businesses using Shopify, and the partnership has added to the value of the e-commerce services company's thriving platform. Analysts were generally very bullish on the development.
RBC Capital analyst Mark Mahaney published a note on June 18 reaffirming his "outperform" rating on Shopify and raising his one-year price target on the stock from $825 to $1,000 per share. Mahaney's target suggested roughly 20% upside on the stock at the time of the note's publication, and the company's share price quickly went on to reach the analyst's valuation estimate.
Shopify stock: Understand more basics
July 5, 2020
- Shopify’s revenue rose 73%, 59%, and 47% in the last three years
- Shopify’s primary business is subscription-based Software-as-a-Service (SaaS)
- It earns over 60% of its revenue from merchant solutions, which is a transaction-based business
- Shopify’s business model has a higher turnover and lower profit
- This threefold increase in Shopify’s valuation shows that investors expect Shopify’s revenue to grow 150% this year.
Stock valuation
Shopify’s revenue rose 73%, 59%, and 47% in the last three years, as more merchants subscribed to its platform and used various merchant solutions like payment and shipping services. Even though Shopify’s primary business is subscription-based Software-as-a-Service (SaaS), it earns over 60% of its revenue from merchant solutions, which is a transaction-based business.
Merchant solutions have a low operating margin, as it includes the cost of third-party associates, with which it has a revenue-sharing agreement. Hence, Shopify’s business model has a higher turnover and lower profit. Even Amazon has a net profit margin of less than 5% but revenue of $241.5 billion.
Hence, the correct way to value Shopify is through its sales growth. Before the pandemic, Shopify stock was trading at 27 times its revenue per share, four times more than Wix’s valuation of 6.7. Shopify’s valuation came on the back of its 50% revenue growth, which is higher than Wix’s 26% growth rate.
But the stocks of Shopify and Wix doubled during the pandemic-driven lockdown, sending their valuations to 89 times and 14 times their revenue, respectively. This threefold increase in Shopify’s valuation shows that investors expect Shopify’s revenue to grow 150% this year.
Can Shopify be the next Amazon?
However, traditional valuation methods do not work for tech stocks. There is a concept of disruptive technology where new technology can break the market of an already established player. It happened with BlackBerry back in 2009, when Apple launched its iPhone and changed the way mobile devices work. BlackBerry, which once owned 50% of North America’s mobile device market, exited the hardware market by 2014.
Shopify is still behind Amazon in many aspects, such as global outreach, last-mile deliveries, and customer popularity. Unlike Apple, Shopify does not have disruptive technology. But it has the potential to be the second best in the e-commerce space. Shopify is building its ecosystem of end-to-end retail solutions for both online and physical stores. It has the potential to replicate Amazon’s success in the coming decade. But investors have already priced the stock for the next 10 years.
Shopify is a good growth stock, but its inflated stock price bubble could burst if it fails to meet investors’ expectations. If you haven’t bought the stock yet, just wait and watch. The stock could move in the strong double digits after its second-quarter earnings are released in early August.
Here is the article.
Shopify stock: Understand the gambling of stock in this coronavirus
July 5, 2020
Here are highlights:
- Since mid-2015, 40-fold growth
- a $10,000 invested in mid-2015 would be $400,000 today
- Shopify stock has increased over 170% since April
- This low volume means that there are a few sellers and buyers in the market.
- The significant jump in its stock price is coming from the few bull investors that are willing to pay hefty premiums to buy the stock.
- June 15 - Shopify stock rose more than 8% in just one day
- July 2 - Shopify stock rose more than 8% in just one day
- Understand when to purchase: wait more sellers - bring price down
- Buying Shopify in such a market is risky as the stock is already overbought, which means there are more buyers than sellers. You may be at a disadvantage if you buy the stock now. Wait until more sellers appear and sell on the next rally. You will then will be in a position to earn the hefty premium from buyers.
- Wait - more sellers - next rally - price drops 50% or more
One more thing:
At $1,397, Shopify stock is trading at 96.6 times its sales per share, which means that investors are willing to pay $96.6 for every $1 of sales. This valuation suggests that investors are pricing the stock for the next five year’s sales. If this is true, Shopify’s stock could reach as high as $1,700 given Brent Bracelin’s revenue estimate.
Pay $96.6 for every $1 of sales - you cannot hold the stock too long. You have to sell it if you can make profit in short turn, before bubble burst. It is a gamble.
Shopify (TSX:SHOP)(NYSE:SHOP) has caught the attention of all North American investors. The stock is in its explosive growth stage, the kind which every investor wants. Those who invested in its IPO in mid-2015 are seeing their money grow 40-fold. If I convert this into dollars, a $10,000 invested in mid-2015 would be $400,000 today.
Most of this growth has arrived just this year with the COVID-19 pandemic. You can still jump onto this tech rush and make some money only if you are ready to risk losing some money if the market moves otherwise.
With high returns comes high risk. No one can become a millionaire without taking risks. The catch is to take a calculated risk. Shopify is a stock worth taking the risk. But don’t jump to buy the stock right now.
Beware: Shopify is overbought
Shopify stock has increased over 170% since April, but its rally is not backed by trading volume. This low volume means that there are a few sellers and buyers in the market. And the significant jump in its stock price is coming from the few bull investors that are willing to pay hefty premiums to buy the stock.
In the last three weeks, there were two instances when Shopify stock rose more than 8% in just one day. In both cases, there was a massive gap in the closing price of the previous day and opening price of that day. The first instance was on June 15, when the company announced its partnership with Walmart. At that time, its stock opened at a premium of $44.7.
The second instance was on July 2, when the company announced its partnership with Chipotle Mexican Grill. At that time, Shopify stock opened at a premium of $121, and only 206,000 shares were traded, which is lower than its average trading volume of 289,000 shares.
Buying Shopify in such a market is risky as the stock is already overbought, which means there are more buyers than sellers. You may be at a disadvantage if you buy the stock now. Wait until more sellers appear and sell on the next rally. You will then will be in a position to earn the hefty premium from buyers.
Now, the question is, why are these few investors willing to pay such a high premium?
Bullish investors are betting on Shopify’s revenue growth potential
Investors are betting on Shopify’s revenue growth. Shopify is a Software-as-a-Service (SaaS) business which aims to secure large enterprise customers who buy premium subscriptions for a longer term. Its recent partnership with large brands like Walmart and Chipotle will bring significant incremental revenue, thereby revising analysts’ revenue estimates for the e-commerce company upwards.
Between June 15 and July 2, three Wall Street analysts raised their price target on Shopify by 15%-35%, which drove the stock’s price up 38%. All three analysts raised their price targets on the back of higher revenue estimates for the company.
Shopify is in the hyper-growth stage, with a revenue CAGR of 50% in the 2015-2019 period. Piper Sandler’s analyst Brent Bracelin expects Shopify’s revenue to reach US$12 billion by 2025, which represents a CAGR of 39%.
At $1,397, Shopify stock is trading at 96.6 times its sales per share, which means that investors are willing to pay $96.6 for every $1 of sales. This valuation suggests that investors are pricing the stock for the next five year’s sales. If this is true, Shopify’s stock could reach as high as $1,700 given Brent Bracelin’s revenue estimate.
How can investors make money?
The Walmart and Chipotle partnership will lead the way for Shopify to win many more deals from larger enterprises. Such large accounts will give Shopify long-term recurring revenue from subscriptions and significantly boost its transaction volume.
The online retail spending is accelerating in the age of COVID-19. As long as this wave of online shopping lasts, Shopify stock will continue to grow. You can still surf this wave and make some short-term gains.
Buy Shopify when it declines as the stock will rise once again on any positive news that can bring incremental revenue. However, the stock would fall when the momentum slows, as investors have already priced in the next five years of revenue estimates.
The post Is Shopify’s (TSX:SHOP) Explosive Stock Rally Sustainable? appeared first on The Motley Fool Canada.
From article.
Shopify stock: Revenue was up 47% in the first quarter
Shopify (NYSE:SHOP) is a business seemingly tailor-made for a world where physical retail stores are closed and consumers are afraid to leave their homes. The company sells subscription products that provide everything someone would need to sell products online. It's not crazy to think that e-commerce growth will accelerate in the long run because of the pandemic, and Shopify is well positioned to capture that growth.
The market has latched onto this story and then some. Shopify stock has more than doubled since bottoming out in March, pushing the valuation to stratospheric levels. Valued at nearly $90 billion, Shopify trades for over 55 times last year's sales, astronomical even for a fast-growing subscription software company. The company is unprofitable on an unadjusted basis, and losses are growing.
Shopify is a story stock, so valuation and losses don't really matter, at least not right now. What matters is growth and growth potential, and on that front Shopify delivers. Revenue was up 47% in the first quarter, and the most optimistic view of the company's total addressable market would be the entire online retail industry.
From the article.
Shopify stock: Bubble? When to burst?
Shopify (NYSE:SHOP), a provider of an e-commerce platform that allows small businesses to easily sell online, currently trades at an enterprise value-to-sales ratio of nearly 70. The stock has soared 160% this year, and it's up 265% from its 52-week low. If there's a bubble in pandemic stocks, Shopify is the poster child.
The premise behind Shopify is sound – e-commerce sales growth has accelerated due to the pandemic, and many businesses need to turn to online sales to survive. If you forget about the fact that most of Shopify's customer base is comprised of exactly the kinds of businesses that fail at a high rate during an economic downturn, it's easy to justify paying a wild price for this fast-growing Internet stock.
Let me put Shopify's nose-bleed valuation into context. During the dot-com bubble, Amazon.com, Microsoft, and Cisco were three tech stocks that caused a lot of pain for many years after the bubble burst, even though all three were ultimately success stories. It took just about a decade for Amazon stock to reclaim its dot-com bubble high, and even longer for Microsoft. Cisco still hasn't, even though it's the overwhelmingly dominant provider of networking hardware and a successful company by any measure.
Today, Shopify trades at a higher enterprise value-to-sales ratio than Amazon did at its dot-com peak. The story may turn out well for Shopify in the long run, like it has for Amazon. But don't let survivorship bias fool you. For every Amazon, there were many stocks with sound premises and sky-high valuations during the dot-com boom that crashed and burned, never to recover.
A nonsensical stock price can become more nonsensical – that's how bubbles work. But as Ben Graham said, the market is a voting machine in the short run and a weighing machine in the long run. Right now, Shopify is winning a popularity contest. It won't last forever.
From article.
Stock research: Amazon, Shopify, Square and Paypal
Consider some of the biggest players in the e-commerce space. Shares of digital seller Amazon.com have grown more than 2,500% over the past 10 years, and by empowering the next generation of online merchants, Shopify stock has gained more than 3,900% since its debut in 2015. Two cutting-edge providers in the digital payments space have notched impressive returns for investors over the past five years: Mobile payments processor Square and digital payments provider PayPal have returned 769% and 383%, respectively, since debuting in 2015.
From article.
From article.
TSLA stock: March 20 to July 5 2.83 times return
July 5, 2020
Introduction
It is time for me to look into investing those most popular stocks in the market. It is better to get short term return as well. I got stuck on SABR and ENBL stocks last 30 days, my return is 30% loss instead. I like to do some analysis on TSLA stock using Excel sheet.
My analysis
Introduction
It is time for me to look into investing those most popular stocks in the market. It is better to get short term return as well. I got stuck on SABR and ENBL stocks last 30 days, my return is 30% loss instead. I like to do some analysis on TSLA stock using Excel sheet.
My analysis
Saturday, July 4, 2020
SHOP.TO stock research: June 5 to July 4 30 days 30% return
July 4, 2020
Based on my research, there is less than 0.3% shares SHOP.TO involved last 10% hike up. And 23% shares are involved in last 30 days transactions. Most likely 77% shares are below the price on June 5, 1000 dollars/ share.
I have to think about how to time the market, and take some risk and get some reward on this stock as well.
Introduction
As an investor, a beginner, I suffered so hard last 30 days on my USA Ameritrade portfolio. Meanwhile, my SJTU classmate in 1984 told me two weeks ago, she bought SHOP.TO. The 30 days return is 30%. I like to write a case stduy.
Case study
I have $60,000 dollars in my TFSA account, cash and no income last 30 days. If I can invest on SHOP.TO stock, then the return can be $18,000 Canada dollars. The coronavirus makes Canada stock market like a casino, every one is betting on the largest stock in Canada, the reopen has some issues which caused more big hikes recently.
Based on my research, there is less than 0.3% shares SHOP.TO involved last 10% hike up. And 23% shares are involved in last 30 days transactions. Most likely 77% shares are below the price on June 5, 1000 dollars/ share.
I have to think about how to time the market, and take some risk and get some reward on this stock as well.
Interviewing.io: Find smallest substring containing chars in given array show case
July 4, 2020
Introduction
I got an email that the interviewer likes to showcase our interview. So I also like to share the interview.
My showcase
Interviewing.io -> peer -> showcase, look for Platinum Burrito
Here is my blog to document my experience.
Here is Leetcode discuss post to share the experience.
Introduction
I got an email that the interviewer likes to showcase our interview. So I also like to share the interview.
My showcase
Interviewing.io -> peer -> showcase, look for Platinum Burrito
Here is Leetcode discuss post to share the experience.
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