#7 - Shopify (NYSE:SHOP)
Shopify (SHOP) - Shopify (NYSE:SHOP) is not in any near-term trouble. In fact, I’m sure there are some investors that think I’m nuts for lumping the e-commerce company in with this lot. But hear me out. It’s not the company. It’s the company it keeps. In the last five years, SHOP stock has presented shareholders with a 1,550% return. Yet, the company is not yet profitable. The company has trailing 12 months earnings per share (EPS) of -1.15. The bullish crowd will point to other companies who grew into their stock price, and then some. Amazon (NASDAQ:AMZN) is perhaps the best example and it’s a company that Shopify has to thank for its meteoric growth. But this has to be a case of caveat emptor. I won’t disagree with the momentum crowd that stocks will go up until they don’t. However, I also believe that Newton’s law of gravity applies to more than just apples falling from trees. Right now, SHOP investors may not have reason to pay attention. But bubbles tend to burst rapidly, so consider this a word of caution. 1,550% is a nice profit to take.
About Shopify
Shopify Inc, a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company's platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing.
More- Current Price
- $121.89
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 24 Buy Ratings, 14 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $100.32 (17.7% Downside)
