364.00 +0.41 (0.11%)
After hours: 4:19PM EST
|Bid||364.73 x 1400|
|Ask||364.89 x 1000|
|Day's Range||360.26 - 376.59|
|52 Week Range||117.64 - 409.61|
|Beta (3Y Monthly)||1.17|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 10, 2020 - Feb 14, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||361.58|
Shopify has been a huge winner in 2019. Earnings are booming and the company plans to compete more with Amazon. But with software stocks under recent pressure, is SHOP stock a buy now?
Global Cannabinoids, a bulk and wholesale supplier of U.S. hemp-derived cannabinoids, has officially opened its new online store powered by Shopify Inc (NYSE: SHOP ). B2B customers can now purchase bulk ...
While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, increasing oil prices and deteriorating expectations towards the resolution of the trade war with China, many smart money investors kept their cautious approach regarding the current bull run in the third quarter and hedging or reducing many of […]
Shopify stock popped for the second day in the wake of the company releasing bullish holiday season e-commerce sales data. Shopify stock still trades below an entry point.
(Bloomberg) -- Shopify CEO Tobias Lutke isn’t letting musings by CNBC’s Jim Cramer distract him from playing video games on his day off from work.Lutke on Wednesday was seen playing Activision Blizzard Inc.’s “Starcraft II” on the Twitch video game streaming platform. And earlier, CNBC’s Cramer said that at least two companies in Silicon Valley with market capitalization’s above $70 billion are interested in acquiring the Canadian e-commerce company. Cramer said he didn’t expect the company would entertain any offers because it wants to remain independent.Investors may be at peace with the CEO spending some time away from the company after Shopify shares gained 159% year-to-date, outperforming the S&P/Toronto Stock Exchange Composite Index’s 18% gain. Today alone the stock climbed as much as 7.5% and is up ~21-fold since its May 2015 initial public offering.He wasn’t completely disconnected, however. Lutke responded to questions from fellow gamers as well as some Shopify employees on the Twitch broadcast. About 2,000 people have viewed the Twitch streaming feed today.Lutke didn’t respond to Bloomberg News request for comment on the Twitch platform, while other Shopify representatives didn’t immediately respond to inquiries.\--With assistance from Kamaron Leach and Sebastian Tong.To contact the reporter on this story: Joshua Fineman in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Scott Schnipper, Brad OlesenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Back in February, we wrote that Postscript "wants to be the Mailchimp for SMS." Now they've raised $4.5 million to help get it done. This round was led by Accomplice, and backed by Kayak co-founder Paul English, Wufoo co-founder Kevin Hale, Klaviyo co-founder Andrew Bialecki, Drift co-founder Elias Torres, Front co-founder Mathilde Collin and Podium co-founders Eric Rea and Dennis Steele. The Postscript team is currently made up of 14 people.
Online retailers were winners on a good news-bad news Black Friday that saw overall sales up nearly 20% over last year, but sales that came in under some expectations due to a drop-off in traditional brick and mortar shopping. U.S. shoppers spent more than $7 billion on Friday, thanks largely to online shoppers, who, according to Adobe, spent $168 per online order on average. While Black Friday sales surged online, things were kind of quiet in the stores.
Good day, Amazon.com, Inc. (NASDAQ: AMZN ) is reportedly testing a new service that allows merchants to stage inventories near fulfillment centers to meet holiday demand Amazon is piloting the new service, ...
Apple is at a profit-taking zone. But do you have confidence it's a long-time winner again? This sell rule stood out with Amazon, Microsoft and Zscaler.
Shopify came out of nowhere and has been a strong growth story delivering shareholders with eye-popping returns over the past five years. Everyone knows that Shopify's revenue growth rates are strong, and no one is truly questioning that. What I'm questioning is just what sort of multiple are shareholders justified to put on its stock to make the stock fairly priced?
Shopify, the $40bn Canadian eCommerce platform that counts Kylie Jenner’s cosmetics brand amongst its clients, released a great visual graphic on this holiest-of-holy days in modern capitalism, Black Friday.
With popular social networks seeing some downtime, most shops closed, and many people off work for Thanksgiving, bargain hunters flocked online to start their holiday shopping. Sales for the day totalled $4.2 billion, according to research from Adobe Analytics. Smartphones and tablets continue to figure strong for both browsing and conversions: 45% of all sales happened on mobile for the day, said Adobe, a 24.4% increase on last year's figure of 33.5%.
(Bloomberg Opinion) -- One of the world’s most successful stock pickers showed no sign of losing his touch this year after consistently beating the benchmarks since 2009. What’s changed for him, though, are the countries where he focuses his investment strategy in a disordered world poised for future disarray.Noah Blackstein's Dynamic Power Global Growth Fund returned 307% during the past decade, more than double the MSCI World Equity Index among 1,000 major mutual funds worth at least $200 million. The U.S. and China, the two biggest economies, dominated his results until recently.But his latest choices mark an unprecedented turn in Dynamic Power's composition and coincide with President Donald Trump's threatened and imposed tariffs on goods and services from China, the European Union, Mexico and Canada. The U.S. and China, which accounted for almost 90% of Dynamic Power at the beginning of 2015, represent just 26% of its assets this year with only Hangzhou-based Alibaba left as a 3% China holding. Argentina, the most risky and least creditworthy of 65 nations in market data compiled by Bloomberg, is No. 2 behind the U.S., with 13% of the Dynamic Power portfolio.During the past three years, when the world's gross domestic product increased 14% and GDP for China and the U.S. gained 24% and 12%, respectively, global trade declined for the first time since 1969, according to data compiled by Bloomberg. As global exports diminished, China's five-year rolling average of exports increased 8% to $2.4 trillion. U.S. exports were little changed at $1.5 trillion.Throughout the past four years, when benchmarks for the Group of Seven countries plus China returned (income plus appreciation) 44% on average, Blackstein's fund was still ahead with a 47% return. The U.S. remains the best performer for the period at 66%, followed by Canada, 52%, France, 41%, Italy, 38%, the U.K., 35%, Germany, 33% and Japan, 18%. China was least lucrative at 8?%, according to data compiled by Bloomberg.The shifts weren’t meant to yield a short-term payoff, and Dynamic Power’s 2019 performance was about average among its peers, with a total return of 24% so far.Unlike many of his peers, Blackstein decides what to buy and sell solely on the prospects of roughly two-dozen companies he chooses. He doesn’t focus on geography, just corporate growth potential. Yet his latest investments show that he now sees the greatest opportunity in Japan (9.88% of his holdings), Israel (9.51%), Canada (9.01%), Brazil (7.03%), Singapore (5.97%), Russia (4.02%), New Zealand (4.01%) and the Netherlands (3.81%) among his top 10 picks led by the U.S. and Argentina, according to data compiled by Bloomberg.“I'm not a top-down person; I'm not a macro person,” Blackstein said in an interview earlier this month. “The only way I've made money” since Dynamic Power began in 2001 “has been focusing on the companies that can be substantially larger wherever they reside. For sure, over the last decade the biggest winners have been in the U.S. and China. But the allocation of the fund really comes from the bottom up and I think there are a lot of interesting things going on around the world in Asia, the U.S. and South America.”He jettisoned most of his Chinese investments when it became apparent that a “regulatory crackdown last year in China was severe and significant in a whole host of industries,” including “pharmaceuticals, after-school education, internet advertising, videos and changes in fintech laws,” he said. “I think a lot of people attribute weakness there to the trade war. But from my perspective, a lot of what went wrong with a lot of companies there was sort of played out on the regulatory side.”Right now, Blackstein's favorite holdings are PagSeguro Digital Ltd., the Brazil-based provider of digital-payment systems (8.43%); Newtown, Pennsylvania-based EPAM Systems, Inc. a software developer (6.601%); Ottawa-based Shopify Inc., a cloud-based commerce platform (6.31%); MercadoLibre, the Buenos Aires-based online trading site (5.83%) and Singapore's Sea Limited, which provides personal computer and mobile content platforms (5.81%).“The opportunities, whether they're in the U.S., Asia or South America, have a lot to do with re-platforming technology and the digital transformation of enterprises, or what we're seeing in health care, new medicines, combination therapies, new medical devices and emerging retailers,” Blackstein said.“Am I having trouble finding companies to invest in? I'm not.”\--With assistance from Shin Pei.To contact the author of this story: Matthew A. Winkler at firstname.lastname@example.orgTo contact the editor responsible for this story: Jonathan Landman at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Matthew A. Winkler is Co-founder of Bloomberg News (1990) and Editor-in-Chief Emeritus; Bloomberg Opinion Columnist since 2015; Co-founder of Bloomberg Business Journalism Diversity Program in 2017. During his 25 years as Editor-in-Chief, Bloomberg News was a three-time finalist and winner of the Pulitzer Prize for Explanatory Reporting and received numerous George Polk, Gerald Loeb, Overseas Press Club and Society of Professional Journalists and Editors (Sabew) awards.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The stock market has had a fantastic year, with the S&P 500 in particular rising nearly 25% so far. Certain sectors such as tech have done particularly well, and some former laggards like the big banks have also come roaring back. All in all, there's plenty for investors to be thankful for this holiday season.But it's not time for complacency. Soon, 2019 will be over and everyone's returns will reset to zero as the new year kicks off. Don't forget to handle any tax loss selling, retirement plan contributions and other such matters that need to be taken care of before the Dec. 31 deadline. Once that is done, though, all eyes will be on 2020. * 7 Earnings Reports to Watch Next Week As such, it's time to start looking at some of the top stocks to buy for 2020. While momentum sometimes continues for years on end, oftentimes, the market switches focus from one area to another as the calendar changes. Hence the popularity of strategies such as the Dogs of the Dow that seek to profit from reversion to the mean. With that in mind, here are seven stocks that may not have won that many performance awards in 2019, but are more likely to be top stock picks to buy in 2020.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Stocks to Buy: ExxonMobil (XOM)Source: Jonathan Weiss / Shutterstock.com As of this writing, only 78 of the S&P 500 companies are in negative territory year to date. And that figures. With the market up so big on the year, most individual stocks should be in the green. Down 1% year to date, however, Exxon Mobil (NYSE:XOM) is by far the largest company of the bunch not to advance in 2019. Don't count it out though, this year's biggest dog will hunt in 2020.Why's that? The oil market seems to be nearing a turning point since the 2014 crash in oil prices. The easy capital has finally left the sector. Dozens of smaller E&P firms have gone bankrupt. The shale revolution is quickly running out of juice. We don't have an unlimited amount of cheap oil available to produce; on top of that, political regulation is making it more difficult to drill for new resources. Witness California putting major new measures in place to limit fracking, for example.All the attention may be on proposed new regulations, including a potential national fracking ban if certain Democratic candidates are elected. While that's a concern for smaller players, for Exxon, a major turnaround is brewing regardless. It has oil supplies from around the globe, and is bringing new major projects online from various areas such as Guyana. All in all, Exxon is aiming to double earnings and cash flow over the next five years or so. Given that Exxon is already one of the world's most profitable companies and pays a generous 5% dividend yield, any sort of major growth will send XOM stock soaring. The turnaround in oil prices, should it kick off in 2020, would provide another major boost as well. Avalara (AVLR)Source: PRONEC Corporation via FlickrOver the past few months, there has been a big shift in the e-commerce space. Amazon (NASDAQ:AMZN) stock has lost momentum, as investors increasingly question its strategy around brick and mortal retail, and streaming, among other issues. Meanwhile, newer fresher e-commerce platforms like Wix (NASDAQ:WIX) and Shopify (NYSE:SHOP) are enjoying exponential growth.What's the common thread for these new e-commerce success stories? They tend to empower smaller businesses and web entrepreneurs to get into e-commerce in a big way. These smaller operations are not set up to handle all sorts of back-office and accounting functions that a massive retailer like Amazon can. The result? You need firms to handle mundane but mission-critical things such as managing and reporting sales tax collection.Enter Avalara (NYSE:AVLR), the leading Software-as-a-Service company in this field. Since a Supreme Court decision last year opened the way to far more online sales tax collection, Avalara's business has taken off. Every quarter, it has been reporting an accelerating revenue growth rate and faster new client sign-ups. It's now heading into overseas markets as well as it actively broadens its competitive moat. Avalara has partnerships with Wix, Shopify and other such platforms to directly link Avalara's sales tax software into those commerce engines. This creates a clear growth avenue for Avalara as companies like Shopify sign up more users. * 7 Companies Using Artificial Intelligence to Outperform the Market At a $6 billion market cap, Avalara is still a relatively niche player, and it has plenty of growth runway ahead of it. That's if a major tech player doesn't buy it out first. AVLR stock got whacked on the SaaS stock selloff this fall, and is still down 15% from its highs even after another blow-out earnings report earlier this month. The discount won't last for long; look for AVLR stock to make new highs in 2020. Unilever (UN) (UL)Source: 360b / Shutterstock.com For the more income-focused investor, Unilever (NYSE:UL) (NYSE:UN) is one of the compelling stocks to buy at this price. Unilever is a giant assortment of consumer food and personal hygiene brands. It includes marks such as Lipton tea, Ben & Jerry's ice cream, Hellman's mayonnaise and Axe, Rexona and Degree antiperspirants.Many of these sorts of consumer staples companies have traded up sharply -- Hershey (NYSE:HSY) and Procter & Gamble (NYSE:PG) have both posted huge gains over the past year and now trade around 25x earnings. Unilever hasn't gone up as much yet, likely since it isn't a U.S.-based company, and thus hasn't enjoyed the same passive money flows that have pushed up defensive U.S. stocks. European stocks, by contrast, have underperformed, with general economic weakness there and Brexit concerns keeping investors away.In any case, Unilever stock now sells at just 20x forward earnings; that's a substantial discount to similar peer companies. The company is growing revenues at more than 5% annually, which is a nice figure within consumer staples at the moment. The dividend, at 3.1%, also stands out, particularly since the company tends to hike it at a high single-digit rate most years.Finally, I'd note that Unilever has two listings, UL and UN stock. These have the same economic interest in Unilever; however, the UL shares operate under British jurisdiction, which means that its dividends are paid to American shareholders without any foreign withholding tax, making it the superior option for most U.S.-based holders. Hormel Foods (HRL)Source: Mike Mozart via Flickr (Modified)With Thanksgiving just around the corner, it's natural to think of mainstay Hormel Foods (NYSE:HRL) products such as turkey and ham. But there's much more to the company than just traditional meat products. Hormel is now a leader in a variety of more millennial-oriented products, including organic and non-GMO meats, nut butters, ready-to-eat guacamole and Mexican salsas.On top of that, Hormel has recently made a big move into the plant-based protein space with its Happy Little Plants ground protein product. Hormel's CEO, Jim Snee, indicated that the company had looked into buying a rival plant-based company, but concluded it was cheaper to do it on their own. Hormel went from concept to market with Happy Little Plants in just three months, showing Hormel's robust R&D and distribution capabilities.Why is HRL one of my stocks to buy for 2020? It's one of the more attractive Dividend Kings (a company that has raised its dividend more than 50 years in a row) at the moment. * 10 Tech Stocks to Buy Now for 2025 Its share price has been flat recently as investors fret about the African Swine Fever and its impact on the global supply of pigs. Higher pork prices hit Hormel's profit margins on products such as SPAM and Black Label Bacon. Once those concerns pass, however, HRL stock could easily make a 30%-plus run-up in share price, as peers like Procter & Gamble and Hershey already have. Finally, as the Beyond Meat (NASDAQ:BYND) bubble continues to deflate, money should flow back into more traditional protein-centered companies. Facebook (FB)Source: Ink Drop / Shutterstock.com It's shocking how cheap Facebook (NASDAQ:FB) stock remains. With every passing month, the Cambridge Analytica scandal fades farther into the rearview mirror. Yet, FB stock is still priced as though some major business disruption is coming.How else do you explain the fact that FB stock is selling for just 21x forward earnings despite posting earnings growth of a similar rate? Or that revenue growth came in at a startlingly fast 29% over the past year? Bears kept saying that all the regulatory problems would lead to a massive drop-off in Facebook's business. It hasn't happened. Not even a little bit.Sure, margins are down due to all the steps they've taken to improve the platform's security. But earnings are still growing at more than 20% per year, even during this big hiring period. And revenues are growing at nearly 30%. The whole cancel Facebook thing really didn't play out, meanwhile Facebook's other properties -- Instagram and WhatsApp -- continue to explode in popularity. Facebook's balance sheet is also pristine, with tens of billions in net cash. Don't overthink it, Facebook stock is a great opportunity for 2020. Altria (MO)Source: Kristi Blokhin / Shutterstock.com It appears that the worst has passed for the tobacco industry. Not too long ago, I focused on four vaping stocks to buy as the sector slumped under the weight of intense regulatory and media scrutiny.Sentiment is swinging rather quickly, however. The Trump Administration appears open to allowing flavored e-cigarette product sales again, contrary to previous reports. This would be a big win for Juul, and by extension Altria (NYSE:MO), which has a large Juul stake. Furthermore, the Food and Drug Administration just dropped plans to reduce the amount of nicotine in cigarettes. Meanwhile, the media's focus has shifted away from vaping in general as a huge societal ill to more nuanced reporting focusing on the specific causes of vaping illness such as contaminants in unlicensed black market cartridges. * 10 Mid-Cap Dividend Stocks to Buy Now With all that favorable news, Altria stock has now bounced off the lows; it's back up from $40 to $48. Still, that's down from $75 in 2017 and $58 as recently as earlier this year. At $48 a share, MO stock still yields 7%, making it one of the hottest dividend players out there for 2020. JD.Com (JD)Source: Sundry Photography / Shutterstock.com I recently laid out the full case for JD.Com (NASDAQ:JD) following the company's most recent earnings report. To summarize, JD announced another excellent quarter, with accelerating growth, solid margins and strong cash flow generation. This was all the more impressive because JD managed these results during a time when the Chinese economy is struggling and consumers have pulled back.Look at the results from rival Pinduoduo (NASDAQ:PDD) that just came out, and which caused PDD stock to plummet more than 20%. It's clear that the consumer is hurting, yet JD was able to maintain its market share and keep the business growing in spite of the headwinds.This puts JD in a favorable position for whenever things turn around with China's economy more generally. Throw in any sign of a trade deal or other warming in U.S.-Chinese relations, and JD stock should soar. For now, relations appear to be heading in the opposite direction, which could offer a compelling "buy on the dip" opportunity in JD stock heading into 2020.At the time of this writing, Ian Bezek owned XOM, UL, AVLR, HRL, FB, HSY, MO and JD stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Using Artificial Intelligence to Outperform the Market * 7 Earnings Reports to Watch Next Week * 6 Retail Stocks Dropping Hard Ahead of Black Friday The post 7 Top Stocks to Buy for 2020 appeared first on InvestorPlace.
The e-commerce boom led by Amazon.com has fueled the need for warehouse robots that can help human workers quickly fill orders. And the market for those logistics robots is exploding.
A Canadian-based software platform for creating and running online stores has reached the 1 million milestone as Shopify (NYSE: SHOP) now officially has that many businesses using its services. Shopify generated $183 billion from 2016 to 2018 whereas Amazon undertook $207 billion worth of retail operations in 2018 alone. Shopify has devoted itself to develop tools that make it even easier for users to enjoy its platform.
With turkey day around the corner, investors are shopping the Street for Black Friday deals. Black Friday falls on November 29 and is the biggest shopping event of the year for U.S. consumers, seeing bargain price tags being placed on countless items.That being said, Black Friday is also an important event for investors as it marks the start of the holiday shopping season. As searches using the phrases “reward apps” and “Black Friday deals” are up 200% this year according to a study from Google, it’s no wonder all eyes are on the market.Taking this into consideration, how can investors find out which names are set to deliver the goods ahead of this shopping extravaganza? We recommend turning to TipRanks. The Stock Screener tool helped us identify 3 must-watch stocks ahead of Black Friday, all of which are Buy-rated. Ulta Beauty (ULTA)Ulta is the largest beauty retailer in the U.S., with its 1,213 stores located across the country. While shares have certainly struggled recently, investors are waiting to see if Black Friday can drive a turnaround.Part of the issue has been the impact of the lack of innovation within the cosmetics segment itself, which accounts for 51% of Ulta’s sales. However, its additions to its makeup offerings could paint a prettier picture. New products including Florence by Mills (Millie Bobby Brown), KKW Beauty by Kim Kardashian West, Pattern by Tracee Ellis Ross, The Ordinary, Sunday Riley and Kylie Skin by Kylie Jenner were all released during the beauty company’s third quarter. This could set the stage for huge fourth quarter sales.Guggenheim analyst Steven Forbes commented, “The consensus model appears relatively reasonable and results should improve sequentially as we enter the 4Q.” Not to mention Forbes expects Ulta to make several key investments back into the business. “Based on our conversations, these investments will likely be associated with the company's a) e-commerce/digital and b) supply chain initiatives—note, ULTA is currently slated to open a new Fast-Fulfillment Center (FFC) in Jacksonville, FL in 2020,” he explained.Based on all the above factors and its ability to capitalize on its relationships with vendors, Forbes is keeping Ulta in his shopping cart. Along with his Buy rating, the 5-star analyst set a $300 price target, which implies about 22% upside from current levels. (To watch Forbes’ track record, click here)The rest of the Street’s take is more varied when it comes to Ulta. 12 Buy ratings and 9 Holds assigned in the last three months add up to a ‘Moderate Buy’ consensus. In addition, its $285 average price target suggests shares could rise 16% in the next twelve months. (See Ulta Beauty stock analysis on TipRanks) Shopify (SHOP)Shopify offers a complete e-commerce platform with everything vendors need to sell online, on social media or in person. Even though a modest sell-off followed strong quarterly results, one analyst says that investors should get their hands on SHOP shares.Canaccord's David Hynes wrote in a note to clients that this sell-off implies that “the bar is set awfully high for high-valuation stocks this earnings cycle – particularly those will little or no cash profits”. He added, “We like the idea of owning this stock into a Q4 period in which holiday-driven GMV strength provides upside optionality to the model, and long term we continue to believe that SHOP has the makings of a $100B market cap business at some point in the next 6-8 years.”SHOP has become a stand-out thanks to its ability to execute against its major quarterly initiatives like increasing its international and plus contribution, its fulfillment center build-out as well as its Shopify Capital expansion. On top of this, live merchants reached more than 1 million in September, up from 820,000 at the start of the year. However, it will be important to watch gross payment volume as adoption has slowed over the last year.Nonetheless, Hynes is staying with the bulls. The five-star analyst kept his bullish call and $385 price target, indicating that shares could surge 23% over the next twelve months. (To watch Hynes’ track record, click here)Looking at the consensus breakdown, opinions on SHOP are more split. The bulls come in slightly ahead, with 9 Buys compared to 7 Holds received over the previous three months. The upside potential lands at 19% as a result of its $372 average price target. (See Shopify stock analysis on TipRanks) Foot Locker (FL)The shoe retailer has faced a degree of skepticism from Wall Street, as questions linger regarding how Foot Locker can compete given the weak mall-based environment. Bearing this in mind, investors want to know where FL stands ahead of the holiday shopping season.Some analysts are confident that FL can meet its guidance thanks to footwear product launches. There has been additional access to Yeezy products year-over-year as well as impressive holiday lineups from Nike, Adidas, Puma and Vans. Additionally, it has opened new power stores offering immersive capabilities for customers, localized product with exclusive and limited releases, dedicated women’s and kids’ spaces, digital lockers so customers can pick up online orders and connected inventory. Management’s goal is to have over 200 power stores that reflect local communities.Deutsche Bank analyst Paul Trussell tells investors that FL is still an important destination in the sneaker market. He cites the ability for customers to compare new footwear across a number of brands, mix and match the wardrobe across brands and consult with store employees as giving it the competitive advantage.“The company sees itself as the main destination for the young male customer and expects the new loyalty program and Power Stores to create locations where consumers will hang out,” he noted. To this end, the four-star analyst reiterated his Buy rating and $58 price target. This means that shares could climb 27% higher in the next twelve months. (To watch Trussell’s track record, click here)All in all, cautious optimism circles this retail chain, as TipRanks analytics exhibit Foot Locker as a Buy. Out of 13 analysts polled in the last 3 months, 8 are bullish on FL, 4 remain sidelined, and only one is bearish on the stock. With a return potential of nearly 7%, the stock’s consensus stock-price forecast stands at $48.77. (See Foot Locker stock analysis on TipRanks)
Shopify (NYSE:SHOP) reported reasonably strong third-quarter results on Oct. 29. Unfortunately, investors didn't like the higher-than-expected adjusted loss of $33.6 million. As a result, SHOP stock fell over the next week.The good news for the owners of Shopify stock is that most of those losses have been reversed in recent trading. The bad news is that SHOP stock has still lost 15% of its value over the past three months.InvestorPlace contributor Thomas Niel believes investors should patiently wait for a better entry point in SHOP stock because of Shopify's nosebleed valuation SHOP has a huge enterprise value-to-sales (EV/Sales) ratio of 24.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut I believe an EV/Sales ratio of 24 will look cheap in three to five years if the company continues to successfully add more merchants to its platform,Here's why.1 Million Merchants and CountingIn conjunction with the Q3 results, Shopify CEO Tobi Lutke announced triumphantly that, as of the end of Q3, over 1 million merchants were on the platform. That target was thought to be unreachable 15 years ago when the company's first store opened."This is kind of blowing my mind right now," Lutke said."I had an investor who ended up not investing because they told me that the worldwide market for online stores was about 40,000 stores," the CEO added.I guess that investor feels pretty silly right about now.One negative mentioned by many in the media is the fact that Shopify's revenue last quarter grew 45% year-over-year, slower than the 58% top-line growth in Q3 of 2018 and the 72% jump in Q3 of 2017.What the pundits failed to mention is that it's natural for business' growth rates to fall. It's a lot easier for a business with $200 million in quarterly revenue to grow 72% than it is for a business wit $400 million in revenue.But the growth of Shopify's monthly recurring revenue (MRR) did not slow that much. MRR is defined as the number of merchants multiplied by the average monthly subscription fee in effect at the end of the quarter. That metric went from $26.8 million in Q3 of 2017 to $37.9 million in Q3 of 2018 to $50.7 million last quarter.Shopify's MRR grew 41.4% from 2017 to 2018. The increase slowed slightly to 33.8%, from 2018 to 2019.MRR grew $12.8 million from 2018 to 2019, versus an $11.1 million increase between 2017 and 2018. The Bottom Line on SHOP StockAs long as MRR continues to grow by double-digit percentage levels, Shopify will be in growth mode. Once that metric starts to fall into the single digits, then we can talk about a maturing business. Until then, I'm not sure the valuation of SHOP stock is excessive. SHOP stock definitely isn't cheap, but it's still worth holding for the long-haul. Shopify took 19 months to go from 600,000 subscribers to 1 million subscribers. That's a compound annual growth rate of 37%. If it continues growing at a compound rate of 25%, it will reach 2 million subscribers within a few years.Not even SHOP's CEO knows what the ceiling is for the number of merchants on its platform. Someone thought 40,000 was a best-case scenario. Shopify's current total is at least 25 times that now. Here comes 2 million. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside * 7 Earnings Reports to Watch Next Week * 5 Online Retail Stocks to Buy on the Dip The post Shopifyas Growth Makes SHOP Stock Worth Buying appeared first on InvestorPlace.
Shopify closed just above an area of resistance on Tuesday and followed up with even more gains today. Has the look of a double bottom but the middle of the W was a little lower than we normally see. Still offered a buy point at 349.54. Remarkable that it was up so much Tuesday when most things were down, like Coupa Software rebound mentioned yesterday. It released bullish holiday season e-commerce sales data showing that its merchant customers worldwide saw a 60% increase in sales during Black Friday and Cyber Monday. Shopify sets up e-commerce websites for small businesses. Definetly check out the story by Reinhardt Krause.
Alissa Coram, Multimedia Content Editor at Investor's Business Daily, joins Yahoo Finance's Myles Udland and Jared Blikre at the YFi Interactive touch screen to break down the price action in the Nasdaq Composite and Shopify.