Is Shopify a Buy?

Motley Fool2022-04-24

Shopify remains one of the worst-performing stocks in the tech sector. Shares are down over 65% in 2022, have tumbled 73% from the all-time high hit last November, and they've lost 20% over the past ...

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Comments

sgsg
2022-04-25
sgsg
The world is going progressively towards ecommerce, accelerated by Covid. Increased awareness and e-shopping habit should have long term benefits for Shopify. The short term decline is mainly due to people getting too excited to go physical malls to shop after the restrictions. So price should stabilise and go up gradually soon.
SPOT_ON
2022-04-25
SPOT_ON
Sellllll
Tanyl
2022-04-24
Tanyl
Need more time to grow
MoneyCentral
2022-04-24
MoneyCentral
Wait a little more

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Shares are down over 65% in 2022, have tumbled 73% from the all-time high hit last November, and they've lost 20% over the past ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/04/23/is-shopify-a-buy/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Shopify a Buy?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Shopify a Buy?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-04-24 13:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/04/23/is-shopify-a-buy/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Shopify remains one of the worst-performing stocks in the tech sector. Shares are down over 65% in 2022, have tumbled 73% from the all-time high hit last November, and they've lost 20% over the past ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/04/23/is-shopify-a-buy/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SHOP","symbol_name":"Shopify Inc","start_time":0,"source_url":"https://www.fool.com/investing/2022/04/23/is-shopify-a-buy/","article_id":"2229931581","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2229931581","pubTimestamp":1650776761,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"The e-commerce platform provider has lost more than half its value over the past year.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SHOP":"Shopify Inc","BK4524":"宅经济概念","BK4548":"巴美列捷福持仓","BK4551":"寇图资本持仓","BK4116":"互联网服务与基础架构","BK4566":"资本集团","BK4528":"SaaS概念","BK4532":"文艺复兴科技持仓"},"translate_title":"Shopify是购买吗？","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SHOP":1},"content_text":"Shopify remains one of the worst-performing stocks in the tech sector. Shares are down over 65% in 2022, have tumbled 73% from the all-time high hit last November, and they've lost 20% over the past week alone.Despite some serious long-term growth opportunities, the e-commerce platform provider continues the long, steady decline that not even announcing it would be splitting its shares could stop for very long.Is there still something fundamentally wrong with Shopify, or is the e-commerce platform provider a buy at these discounted prices? Let's dig in.Image source: Getty Images.Making the most of a bad situationShopify has become the cost-effective, go-to platform for anyone wanting to establish an e-commerce presence. Providing an entrepreneur with an easy way to monetize their website, Shopify quickly grew throughout the pandemic as locked-down individuals struck out on their own to create their own businesses.Yet it's also the reason Shopify's stock is falling. The market has turned against it because the stellar growth it achieved by providing back-end solutions to so many people during the depths of the COVID outbreak is now expected to slow dramatically with a reopened economy. Even Shopify admits it.During its fourth-quarter earnings conference call, CFO Amy Shapero told analysts that last year's first quarter was the single greatest period for growth in the company's history, with revenue surging 110% year over year. Lockdowns, coupled with the government handing out stimulus checks, makes it impossible to match the growth the company enjoyed.Moreover, Shopify eliminated the revenue-sharing component for app and theme developers for the websites they help entrepreneurs create. It used to be Shopify took a percentage of developers' first $1 million in revenue, but that's gone now, though it does make the company more attractive to developers.It will also result in more revenue coming from its merchant solutions business than its subscription solutions one, which means gross profit dollar growth will trail revenue growth. But it also means more merchants will be joining the platform and using more of its services as it becomes more vertically integrated.Image source: Getty Images.Changing its business for the betterShopify has a lot of new irons in the fire, launching merchant money management accounts, a small business loan boutique, and a fully hosted enterprise e-commerce platform for fast-growing brands. It will offer non-fungible tokens, or NFTs, to help businesses and brands better connect with customers and is building out more warehouses so that products can be delivered to customers faster.All of that will have the effect of lowering first-half -- particularly first-quarter -- results compared to last year until it laps those events and the new strategies it's implemented begin to ramp up in the back half of 2022.While that could see Shopify's stock experience additional weakness, investors should view it as a buying opportunity. Growth might be slowing compared to record results it posted, but the e-commerce platform provider is still growing, and fabulously so.Fourth-quarter revenue north of $1.3 billion was 41% greater than the year-ago quarter and was 173% more than it reported in 2019, when revenue grew to $505 million, a 47% year-over-year increase. So while Shopify expects the first quarter to be lower than last year (which was up 57% at the time), it anticipates fourth-quarter sales to be higher.Image source: Getty Images.Price is what you pay, value is what you getThose remain phenomenal growth rates, and even Wall Street sees tremendous potential here. Revenue is expected to more than triple to over $18.7 billion by 2026, with profits forecasts to rise eightfold to well over $22 per share.That doesn't make its stock look discounted today by traditional metrics such as price-to-earnings, sales, and the free cash flow it produces, where it goes for 21, 13, and 139 times, respectively, but this is a business still in its early stages of growth. Any chance investors have to scoop up what is really a cheap tech stock based on the market expecting the worst from it ought to be seen as a moment not to be missed.","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9084298999,"gmtCreate":1650866371097,"gmtModify":1676534806137,"author":{"id":"4088503795203670","authorId":"4088503795203670","name":"sgsg","avatar":"https://community-static.tradeup.com/news/0e66143e3114d211d2b51db2a14a65ee","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"4088503795203670","authorIdStr":"4088503795203670"},"htmlText":"The world is going progressively towards ecommerce, accelerated by Covid. Increased&nbsp;awareness and e-shopping&nbsp;habit should have long term benefits for Shopify. The short term decline is mainly due to people getting too excited to go physical malls to shop after the restrictions. So price should stabilise and go up gradually soon.","listText":"The world is going progressively towards ecommerce, accelerated by Covid. Increased&nbsp;awareness and e-shopping&nbsp;habit should have long term benefits for Shopify. The short term decline is mainly due to people getting too excited to go physical malls to shop after the restrictions. So price should stabilise and go up gradually soon.","text":"The world is going progressively towards ecommerce, accelerated by Covid. Increased awareness and e-shopping habit should have long term benefits for Shopify. The short term decline is mainly due to people getting too excited to go physical malls to shop after the restrictions. So price should stabilise and go up gradually soon.","images":[],"top":1,"highlighted":2,"essential":1,"paper":1,"likeSize":41,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9084298999","repostId":2229931581,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9084374207,"gmtCreate":1650835586939,"gmtModify":1676534798205,"author":{"id":"3582922989777578","authorId":"3582922989777578","name":"SPOT_ON","avatar":"https://static.tigerbbs.com/080f029371339d9db26930961de6adb1","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":4,"crmLevelSwitch":1,"idStr":"3582922989777578","authorIdStr":"3582922989777578"},"htmlText":"Sellllll","listText":"Sellllll","text":"Sellllll","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9084374207","repostId":2229931581,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9084331102,"gmtCreate":1650808759150,"gmtModify":1676534796208,"author":{"id":"4087109808120260","authorId":"4087109808120260","name":"Tanyl","avatar":"https://static.tigerbbs.com/174329973340cf0f5b68791ee5b08afd","vip":1,"crmLevel":9,"crmLevelSwitch":1,"idStr":"4087109808120260","authorIdStr":"4087109808120260"},"htmlText":"Need more time to grow","listText":"Need more time to grow","text":"Need more time to grow","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9084331102","repostId":2229931581,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9084024998,"gmtCreate":1650780129833,"gmtModify":1676534792180,"author":{"id":"4091678983335410","authorId":"4091678983335410","name":"MoneyCentral","avatar":"https://static.tigerbbs.com/b65487e9bb510d46c3ac12f7427011cb","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4091678983335410","authorIdStr":"4091678983335410"},"htmlText":"Wait a little more","listText":"Wait a little more","text":"Wait a little more","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9084024998","repostId":2229931581,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":132,"commentSize":4,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2229931581"}