|Bid||475.50 x 0|
|Ask||476.80 x 0|
|Day's Range||467.51 - 479.45|
|52 Week Range||159.25 - 492.50|
|Beta (3Y Monthly)||0.95|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Two years ago, Chris Wane, a now 31-year-old living in Manchester, England, was struggling to pay his bills and often couldn’t afford enough food for the week. Wane started an e-commerce business and used drop shipping — a practice in which a retailer keeps no inventory and a third-party supplier sends consumers the products — to handle orders. “I heard about drop-shipping a couple of years ago, and I wanted to try it,” Wane said.
(Bloomberg) -- Shopify Inc.’s scorching rally and Lightspeed POS Inc.’s successful trading debut this year are throwing the spotlight on who might be the next Canadian tech star to go public.A total of C$1 billion ($751 million) was invested in 142 venture capital deals in the first quarter, up 48% from a year earlier, according to the Canadian Venture & Private Equity Association. More than half of that was in tech and increasingly from U.S. investors.Here’s what the founders of some of Canada’s hottest tech firms are saying about the future of their companies, and the potential for initial public offerings:ClearbancClearbanc offers $10,000 to $10 million to startups to help fund their marketing campaigns on Facebook, Google and the like in return for a flat fee and a share of revenue.The Toronto-based investment firm, founded in 2015, raised $300 million in new funding led by Highland Capital Partners of the U.S., the largest disclosed VC-financing this year in Canada. That brings total funding to $420 million.Clearbanc plans to offer $1 billion in financing this year and is interested in funding parts of a business that could turn into a repeatable revenue stream--infrastructure, shipping and sales commissions.It’s expanding outside the U.S. and Canada, where there’s a less developed venture ecosystem and “banks are more conservative,” according to co-founder and chief executive officer, Andrew D’Souza.“We think that the fundamentals of the business, the market opportunity, justifies a large standalone business,” D’Souza said about the possibility of an IPO.WattpadWattpad Corp. may no longer be a startup but its ambitions just keep growing. Founded as a mobile-reading app, 12-year-old Wattpad now calls itself a “multi-platform entertainment company.”The Toronto-based company has provided content for one of the most re-watched movies on Netflix (“The Kissing Booth”), a Hulu series (“Light as a Feather”), and this year a Hollywood feature film (“After”), all through Wattpad Studios, launched in 2016.Last week it inked a deal with Penguin Random House in the U.K. to turn its online content, mainly created and read by young women, into books. That follows the launch of its own publishing imprint, Wattpad Books, in the U.S. in April.The company uses data from more than 80 million monthly active users to identify the best stories across its platform and turn them into content. It has launched a paid, ad-free version as well as exclusive content for a fee.Wattpad has raised $117.8 million from investors including OMERS Ventures, Tencent Holdings Ltd.’s capital arm, and August Capital Corp, and is generating revenue in “eight figures,” according to co-founder and chief executive, Allen Lau.As for an IPO, it’s “not what we spend time focusing on,” Lau said. “Our focus right now is on movies and TV shows, with our partners.”VidyardVidyard Inc. wants to be the YouTube of business videos. Its software allows companies to create personalized videos to engage with customers and use data from their viewing habits to analyze that engagement.Companies are expected to spend $103 billion annually in video-ad marketing by 2023, according to Forrester Research.Vidyard counts 1,200 businesses in over 170 countries as its customers, including enterprise customers such as Honeywell International Inc., LinkedIn and Citibank.“In terms of the next two to three years, we’re just focused on consistent, hockey-stick style growth,” says Devon Galloway, co-founder and chief technology officer at Kitchener, Ontario-based Vidyard.The company has raised $60 million to date from investors including OMERS Ventures, Inovia Capital and the venture capital arm of Salesforce Inc.Galloway said if Vidyard continues to grow as well as it has an IPO would certainly be on its path.WealthsimpleWealthsimple Inc., wishes to replace banks as a customer’s primary financial relationship, according to founder and CEO Michael Katchen.“We want to be a firm that demystifies money,” Katchen said in an interview in Bloomberg’s Toronto office. The investment-services company has more than C$5 billion in assets under management and 175,000 customers in Canada, the U.S. and U.K.The robo-adviser favored by millennials, is also targeting wealthier Canadians and has branched out into commission-free stock trading and savings products. Mortgages, life insurance and checking accounts could be next, Katchen said.Founded in 2014, WealthSimple is not yet profitable, but its backers are patient, Katchen said. These include Power Financial Corp., an investment arm run by the Desmarais family and Allianz SE.Katchen said he’s interested in an IPO but it’s still “a few years away.”(Updates with Clearbanc’s financing plan)To contact the reporter on this story: Simran Jagdev in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Jacqueline Thorpe at email@example.com;David Scanlan at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- When Swedish banking firm Klarna became Europe’s most valuable financial technology startup last week, it was only the latest sign that digital finance has escaped the troubles afflicting legacy lenders.Its latest fundraising gave Klarna, which facilitates online installment payments, a $5.5 billion valuation. European fintech companies raised $3.3 billion in venture capital in the first half of 2019, up from $1.9 billion in the same period last year, according to data compiled by CB Insights. In contrast, an index of European Union banks has dropped 39% the past 18 months.“Investors are drawn to it because it’s the perfect blend of a huge, mature industry which, empowered by technology, can deliver vast returns, far in excess of what you see if you’re starting up out of nowhere,” said Ben Brabyn, chief executive officer of Level39, one of Europe’s largest fintech accelerators, in an interview.Here are a few other recent industry highlights and what to watch out for next.Fintechs Flout Brexit WorriesLondon fintechs defied the Brexit gloom that descended on the the U.K. Transferwise Ltd. announced a funding round in May that valued the eight-year-old company at $3.5 billion, up from $1.6 billion in 2017. A few weeks later, online bank Monzo closed a new funding round doubling the startup’s valuation to more than $2.5 billion. Meantime, Revolut Ltd., while being eyed by regulators for possible compliance lapses, expanded into stock trading. They weren’t all winners: shares of peer-to-peer lender Funding Circle Ltd. have plunged 65% this year.IZettle’s Surprise PayPal SaleIt was the midnight deal that surprised many -- PayPal Holdings Inc. purchased iZettle AB for $2.2 billion in May 2018 the night before the Swedish startup had planned to price its shares in an initial public offering. Stockholm-based iZettle competes with Twitter co-founder Jack Dorsey’s Square Inc., and Canada’s Shopify Inc.Adyen Soars After IPODutch payments processor Adyen NV hit headlines for two reasons last year. First, in February, it was announced the Netherlands-based firm would replace PayPal as EBay Inc.’s global checkout service. Then in June, it held a billion-dollar IPO and saw its shares surge 90% in the first day of trading. The company, whose clients include Netflix Inc. and Spotify Technology SA, is now valued at 20 billion euros ($22.4 billion)Worldpay’s $35.5 Billion DealAs one of the world’s biggest payments firms, Worldpay Inc. handles about $1 trillion annually -- similar to Chase Paymentech. When Fidelity National Information Services Inc. said on July 31 it’d completed its $35.5 billion acquisition of the company, data compiled by Bloomberg showed the combined business will be the world’s biggest in the processing and payments industry. It wasn’t a bad day for Ohio-based Worldpay, which less than two years earlier had been a British enterprise snapped up for 7.7 billion pounds ($9.3 billion) by U.S. merchant acquirer Vantiv.What’s Next?N26, the German mobile bank backed by billionaire Peter Thiel, announced in July it had extended its most recent fundraising round to $470 million, at a valuation of $3.5 billion. The company is expanding from Europe to the U.S., betting it can attract users from established lenders and credit card providers with free accounts, fewer fees and phone alerts.Other companies to watch include Revolut, which despite multiple run-ins with controversy remains exciting to investors after it held one of the biggest fundraising rounds for a European fintech last year, and app-based banks Monzo and Starling, which are attracting customers at a rapid clip.Further down the line is the U.K.’s online lender Zopa Ltd., which its CEO Jaidev Janardana said in July could potentially hold an IPO in 2021.“The valuations are encouraging but they’re not enough. They’re just an early indicator. The important numbers to watch are the customers,” said Brabyn. “We all need to step up to demonstrate the public value of what we do.”To contact the reporter on this story: Ali Ingersoll in London at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Nate Lanxon, James HertlingFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Every investor looks for a winner, and while “past performance does not guarantee future returns,” it’s only natural to look at stocks which have been successful when choosing a portfolio. Here, we look at three stocks have more than doubled in value over the past twelve months and show every sign of keeping their gains and continuing to return performance for investors. The NASDAQ index is up 18% this year, but all three of these stocks have surpassed that by an order of magnitude. Cronos Group, Inc. (CRON) Canada’s third largest cannabis company is up 124% in the last year. The company has benefited from the general gains of the cannabis industry in the wake of Canada’s sweeping legalization of marijuana in the second half of 2018. Q2 results, released last week, underline the gains. Cronos beat Wall Street’s expectations by a country mile, posting a C$0.22 earning per share instead of the forecast C$0.02 loss. Gross revenues, at C$10.78 million, were almost double the expected C$5.6 million. A company statement said that a combination of increased production and increased demand in the adult-use recreational market supported the quarter-over-quarter revenue growth.Cronos’s gains are less surprising when put into the company’s particular context: it’s positioning itself as primarily a CBD supplier, dealing in the non-psychoactive cannabidiol derivatives prevalent in the medial markets. CBD and other derivatives lie on the high-margin end of the marijuana industry, so Cronos should see future gains accordingly. The CBD market is expected to show a steep growth curve over the next few years, expanding more than 100% compounded annually through 2023.Cronos ended 1H19 with one serious drawback and one big advantage in its ledger. As a potential pothole, the company lags its peers in cannabis production. Where Aurora (ACB), Canada’s largest producer, predicts reporting 25,000 to 30,000 kilos available for sale last quarter, Cronos only sold 1,584 kilos in Q2. Cronos will have to address this issue, and improve production going forward, if it wants to remain profitable.On the plus side, Cronos ended Q2 with an enormous cash reserve. The company has over C$2.3 billion– about 39% of its total market cap – available in a combination of cash-on-hand and short-term investments. This cash boon comes mainly from tobacco company Altria’s (MO) recent US$1.8 billion investment in Cronos.New markets are uncertain, and like many companies making a mark in the newly legalized cannabis industry, Cronos reflects that uncertainty with mixed reviews from the analysts. The strong earnings, report, however, has brought it two well-deserved buy ratings. Writing from CIBC, John Zamparo reiterated his Outperfom on the stock, and set a C$25 price target, implying an upside of 43%. Piper Jaffray analyst Michael Lavery was impressed enough after the Cronos earnings call, when the company gave clarification on future product and sourcing pricing matters, that he initiated coverage of CRON with a Buy rating and a price target of US$18. His target suggests an upside of 35% for CRON shares.Overall, Cronos Group has a Moderate Buy from the analyst consensus, based on 3 buys, 3 holds, and 1 sell given in the past three months. Shares are selling for US$13.25 in New York, so the US$22.50 average price target gives an upside potential of 69%. Roku, Inc. (ROKU)This Over-the-Top online video streaming company is up 130% since a year ago, reflecting the dynamism of the Video-on-Demand sector. A direct competitor of Netflix (NFLX), Roku is positioning itself for continued growth in the online streaming business, even as Apple (AAPL) and Disney (DIS) enter the field later this year. Roku will survive by supporting numerous streaming companies through its hardware, collecting royalties on subscriptions and providing customers what they really want: variety in programming.It’s a strong model, with plenty of potential in rapidly expanding niche, and this month’s Q2 earnings report bears that out. Roku clobbered Wall Street’s estimates, beating the EPS forecast by 14 cents per share. Revenue grew 59% quarter-over-quarter, coming in at $250 million against a forecast of $224 million.In the wake of the blockbuster earnings report, Rosenblatt’s Mark Zgutowicz (a 5-star analyst according to TipRanks) upgraded ROKU shares from Neutral to Buy, saying, “Roku's earnings report marks the second consecutive quarter of strong growth across hours viewed, average revenue per user and users. The strong performance signals the company isn't facing hurdles in reselling inventory at a premium cost… Roku's momentum can sustain over the coming years and the company could penetrate around 50% of the total addressable market of 138 million households in 2027.” Zgutowicz backed up his optimism on the stock by nearly doubling his price target – from $77 to $134. His new target may not be high enough, however, as ROKU shares are on a tear, having gained 33% since the earnings release.Stephens’ Kyle Evans (a 4-star analyst) also upgraded ROKU shares after hearing the Q2 earnings. He wrote of the company, “We believe Roku's fundamentals remain sound and that its nexus business model will continue to power solid financial results.” Evans also increased his price target, from $84 to $120, but Evans’ target, too, has been outpaced by ROKU’s market performance.That Wall Street’s analysts will have to set new, higher, price targets for ROKU is borne out by the most recent rating, from Needham’s Laura Martin (a 5-star analyst). Martin was impressed by the earnings, but sees Roku’s biggest advantage in its business model: “The list of streaming video providers continues to expand and presents a complex or confusing sentiment for consumers with more than one subscription. Roku offers the convenience of aggregating both big and small providers on one easy-to-use platform.” She gives the stock a $150 price target, suggesting an upside of 11%. Justifying her position, Martin adds, “Online aggregators who get ahead, stay ahead.”ROKU shares are selling for $134, 14% higher than the average price target of $115. That average, however, is based on targets set the day after the earnings report; as noted above, ROKU shares have jumped 33% since then. Roku maintains a Moderate Buy rating from the analyst consensus, based on 7 buys, 4 holds, and 1 sell given in the past three months. Of the Buy ratings, 6 were set last week, indicating how quickly a market consensus can shift. Shopify, Inc. (SHOP)Headquartered in Ottawa, Canada, Shopify is best known for its eponymous e-commerce platform. Shopify offers online merchants a set of tools to facilitate customer engagement, marketing, payment processing, and product shipping. The success of the platform has supported the stock’s 145% gain over the past year. The company’s year-to-date gain, of 164%, is even more impressive. For comparison, the S&P 500 is up 15% year-to-date.Shopify’s earnings have reflected the stock’s gains. For Q2, the company reported a massive beat on earnings. The 14 cent EPS was seven times higher than the 2-cent expectation, and the quarterly revenue of $36 million easily passed the $350 million analysts had forecast.Investor confidence and high earnings have brought in plenty of love from those same analysts. Writing from Canaccord, David Hynes (a 5-star analyst) said, “Shopify's results included 48% revenue growth, operating profitability, and gross merchandise volume that surpassed $1B per week… Shopify has the underpinnings of what could be a $100B market cap company in the next 6-8 years. Look for pullbacks in the stock as opportunities to add to positions.” Hynes gives SHOP shares a $385 price target, suggesting an upside potential of 5% from current prices.Hynes is not the only analyst to bump up his price target on SHOP. KeyBanc’s Josh Beck (a 5-star analyst) also set a $385 target, noting, “The growth runway at Shopify is substantial… Shopify's cloud-based, mobile-centric platform is well positioned…” And writing from Wells Fargo, Timothy Willi (a 4-star analyst) set the most aggressive price target, of $400. He said of the company, “Shopify also noted a stronger than expected response to its fulfilment network… That will benefit new merchant acquisition while helping existing merchants reduce shipping costs and times and drive further gross merchandise volume growth.” Willi’s price target indicates a possible 9% upside for SHOP.Like Roku above, Shopify’s share price has posted strong gains in the immediate aftermath of an expectation-beating earnings report. The current share price of $366 is 6% higher than the price target of $343. The stock gets a Moderate Buy from the analyst consensus, based on 12 buy, 8 hold, and 2 sell ratings in the past three months. Of the buy ratings, 8 have been given since the August 1 earnings release.Find out what stocks are hot at TipRanks' Analysts' Top Stocks page.
Shopify's growth is slowing and trades at a substantial premium. Eventually, the share price will come back down to earth and present a better entry opportunity.
Companies that turn in better-than-expected earnings are rewarded by better-than-average stock returns. Why Take-Two Interactive, Shopify, Match Group, and Advanced Micro Devices will continue to shine.
President Trump is escalating the trade war between the U.S. and China with a new wave of tariffs - and it could strike the retail sector hard.
The stock market fell on new Trump tariffs and the Fed rate cut outlook. Apple earnings beat but a breakout fizzled. AMD dived on guidance, Beyond Meat sank on an offering.
Analysts lifted revenue estimates and price targets significantly on Shopify Inc (NYSE: SHOP ) after the Canadian e-commerce company topped expectations on several fronts when it reported second-quarter ...
Square has agreed to sell its Caviar food delivery app to DoorDash. Square has valued Caviar at $410 million. The deal is expected to close this year.