38.98 +0.28 (0.72%)
Pre-Market: 4:08AM EDT
|Bid||38.97 x 800|
|Ask||39.31 x 3000|
|Day's Range||38.55 - 39.79|
|52 Week Range||26.01 - 42.00|
|Beta (3Y Monthly)||1.21|
|PE Ratio (TTM)||14.96|
|Earnings Date||Oct 28, 2019 - Nov 1, 2019|
|Forward Dividend & Yield||0.56 (1.39%)|
|1y Target Est||42.21|
It looks like eBay Inc. (NASDAQ:EBAY) is about to go ex-dividend in the next 3 days. Investors can purchase shares...
Shares of Apple and Silicon Valley's semiconductor companies were pummeled on Friday as President Trump responded to new tariffs from China with a tweet saying he's demanding that American companies "immediately start looking for an alternative to China."
Amazon (AMZN) agrees to acquire 49% stake in Future Coupons, through which it will be entitled to snap up a minority share in Future Retail.
ETF Trends CEO Tom Lydon discussed the SoFi Gig Economy ETF (GIGE) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. GIGE seeks long-term capital appreciation by providing exposure to companies involved in the revolutionary shift towards a "gig" economy, a free-market system comprised of freelancers and shared resources, such as transport and real estate. As a relatively new fund, Lydon explained how the current trend of “gig” economy speaks to what that really is, which is essentially something on the side of what you do.
(Bloomberg) -- Amazon.com Inc., criticized for wielding too much power over third-party merchants on its marketplace, said it will spend some $15 billion this year to help them boost sales.The sum, which Amazon hasn’t previously disclosed, includes spending on portions of the company’s warehouse network dedicated to storing and shipping sellers’ items as well as salaries for the engineers, managers and support staff who operate the digital marketplace and deal with individual merchants. It also includes the cost of developing new services, such as a dashboard that helps sellers decide what new products to carry, and a revamped training program.Nicholas Denissen, a vice president, declined to say how the company’s anticipated $15 billion in spending had changed from 2018 or what portion of Amazon’s companywide expenses it represents. “I would say it’s a lot of money,” he said.Besides buying and selling goods itself, Amazon has for more than a decade rented space on its website to third-party sellers -- many of them mom-and-pop merchants -- who last year accounted for 58% of the company’s unit sales.Many of these sellers have built profitable businesses on Amazon, but some have complained in recent years about the rising costs of using the company’s logistics network and buying ads to stand out on the increasingly cluttered website. Some have tried to reduce their reliance on the site by selling their wares on Walmart.com and EBay but are resigned to the fact that Amazon generates most of their sales.Denissen said Amazon has been responsive to seller feedback. “I can’t think of one meeting or one day I’ve been in where somebody isn’t obsessing or fighting on behalf of selling partners,” he said.The Seattle-based company’s relationship with independent sellers has also drawn scrutiny amid a broader examination of whether U.S. tech giants are violating antitrust law. The European Union is investigating whether Amazon is shortchanging smaller merchants. In the U.S., the Federal Trade Commission has spoken to at least one Amazon seller, and the regulator’s chairman said he would be interested in hearing from more.Amazon in the last few years has made merchants fixtures of its marketing and lobbying campaigns, an effort to portray itself as a friend of the little guy rather than a behemoth putting Main Street shops out of business. Denissen, who for the last few years oversaw new programs geared toward small- and craft-sellers as vice president of “marketplace business,” took on a new title in July as VP of “small business.”“Think of me a little bit as the voice of small businesses,” inside Amazon, he said.This year the company rolled out reduced storage fees for sellers who take Amazon’s suggestions on inventory levels and a program that automates pricing while guaranteeing merchants a minimum price. One service, a seller performance dashboard, is designed to warn sellers who aren’t meeting Amazon standards before cutting them off. The company has released more than 150 new tools, including programs made widely available after initial launches in the U.S.“Their success is our success,” Denissen said of Amazon’s sellers. “We’d be more than stupid to not listen to them, or ignore any concerns that they have.”To contact the reporter on this story: Matt Day in Seattle at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Robin Ajello, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
On its face, Shopify (NYSE:SHOP) stock looks like a bubble, or something close. Shopify stock has risen 190% in 2019 alone, adding almost $25 billion in market capitalization in the process. It trades at 373x 2020 consensus EPS and almost 20x next year's average revenue estimate.Source: BalkansCat / Shutterstock.com In a market that -- in tech in particular -- looks dearly valued, SHOP stock seems like Exhibit A in the argument that U.S. equities have run too far. And yet those analysts -- myself included -- who have decried the stock's valuation have at best missed out on profits and at worst been run over. * 10 Marijuana Stocks to Ride High on the Farm Bill I wrote earlier this month that there was little reason to see the run ending any time soon. This is a momentum play, and that momentum remains intact. As I noted earlier this year, the company's move into fulfillment opens up new opportunities for the company, and for Street growth models. At least one analyst already has jumped on board.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut those factors don't necessarily answer the broader question here: is Shopify overvalued? To be honest, I still believe that it is, at least from a truly fundamental standpoint. This is a wonderful business, but there are worries about its resilience in a recession. And the valuation incorporates something close to perfection for years to come.That said, it's worth noting that there is a fundamental case here. This isn't a pure bubble, like so many stocks were in the first dot-com era of the late 1990s. It's hard to make the case that SHOP stock is cheap. But looking past the headlines, there is at least a way to justify the current valuation -- and maybe even a bit more upside. How Margin Expansion Can Boost SHOP StockShopify's earnings multiples admittedly look close to absurd, whether it's the 370x+ forward P/E or a 2019 EV/EBITDA multiple likely in the 500x range.But those multiples are impacted by the fact that Shopify's margins are razor-thin right now. Adjusted operating income in 2018 was just 1% of revenue. In the first half of 2019, that figure has held, while improving from a negative 1% print the year before.As those margins expand, earnings are going to grow exponentially even ignoring continued top-line improvements. Operating margins have expanded about 200 basis points (bps) in the first half; if the company repeats that performance in the second half, while posting its expected 43% year-over-year revenue growth, operating income should rise more than 400%.It's not as if Shopify is done with that expansion. Even assuming margins get to 3% this year, there's still a nice path to over 10%. This is largely a subscription revenue business after all, even if gross profit on merchandise sales are much lower. Incremental margins (the profitability of added revenue dollars) should be quite high.Meanwhile, Shopify still is investing in its business, with sales and marketing alone still about 30% of revenue. A more mature business can get that figure down dramatically. Revenue growth will boost gross margins and leverage G&A and R&D spend.Consensus EPS for next year appears to imply a roughly 6% operating margin. Get that figure to 15% and double revenue -- the latter of which Shopify should be able to do by 2023 -- and P/E gets down to a more reasonable (if still very expensive) 70-80x.That doesn't mean SHOP stock is cheap. But we've seen SaaS plays like Salesforce.com (NYSE:CRM) trade at above 40x for years. Fulfillment profits should start arriving a few years from now. At the least, Shopify stock can go from being "absurd" to simply being expensive. That might be enough. Comparing SHOP Stock to AMZN StockThere's another way to look at Shopify's valuation that makes it seem at least potentially reasonable. According to estimates cited in Shopify's most recent presentation, Amazon (NASDAQ:AMZN) has 47% share of U.S. eCommerce. Shopify has one-tenth that penetration, at 4.7%.It's too simplistic to argue that Shopify, then, should be worth roughly one-tenth of Amazon, or almost $90 billion. Amazon's valuation, of course, includes Amazon Web Services, which one analyst believes could be worth $500 billion. Amazon's greater scale should be more valuable. And, of course, Shopify's market share doesn't actually come from the company, but rather its merchants. Shopify gets only a portion of those revenues (which it refers to as GMV, or gross merchandise value) via subscription and payment fees.That said, Amazon's North American business likely is worth $500 billion or more. It, too, has a huge reseller business. And its profit margins in North America, about 5%,aren't exactly enormous.No. 2 on the list is eBay (NASDAQ:EBAY), at 6.3%. eBay is worth $35 billion. Given that Shopify almost certainly will pass that online reseller in the next few quarters, is there at least an argument that SHOP stock should be more valuable? And maybe much more valuable? The same is true of Square (NYSE:SQ), a semi-competitor which, even after a recent plunge, is valued at roughly $25 billion excluding cash.Again, this is not to say that Shopify stock is cheap. It isn't. I wouldn't pay $370 a share for it. And if the entire market is overvalued, as many fear, these comparisons will break.But here, too, there's at least a way to see the valuation as something short of ridiculous. Right now, given the short-term enthusiasm behind Shopify stock, that too might be enough.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post There Is a Fundamental Case for Shopify Stock appeared first on InvestorPlace.
A new Bank of America Merrill Lynch report lays out a dozen stocks to have during the recession. Half of them are for companies either based in Silicon Valley or that have a strong presence here.
on original shows and movies for its new video streaming service that it hopes will challenge the likes of Netflix, Disney and AT&T-owned HBO. The company’s new TV+ service will go live within the next two months, according to people briefed on its plans, in an attempt to pre-empt the launch of Disney Plus, which is scheduled to debut in the US in November. Apple has not yet revealed pricing or other key details for its TV+ subscription service, but said new content would be added every month after the service launches in more than 100 countries.
Tobi Lütke, the Shopify chief executive, prefers his employees to refrain from checking the ecommerce company’s share price too often. Shopify’s shares, which first listed on the New York Stock Exchange in May 2015, have been on a tear this year. “I had to remind everyone in [corporate messaging app] Slack that our share price is based on supply and demand, and is something that Wall St does,” said Mr Lütke, comparing the equity markets to sports betting.
Reportedly, Alibaba Group Holding (BABA) has agreed to acquire an e-commerce company, Kaola Unit, from NetEase Inc. for approximately $2 billion.
For sellers looking to make extra cash from online retailing, the decision to go online is easy but the choice between eBay and Amazon might not be so easy.
Alibaba Group Holding's (BABA) fiscal first-quarter 2020 earnings are driven by steady improvement in core commerce and cloud businesses, along with strong growth in metrics.
The latest round of 13F filings from institutional investors were out this week, revealing to the world the stocks that some of the richest and most successful investors have been buying and selling. Takeaways ...
Aug.22 -- Adyen BV Chief Executive Officer Pieter van der Does discusses the payment processor's first-half performance, growth efforts, and industry competition. He speaks on "Bloomberg Markets: European Close."