|Bid||176.00 x 900|
|Ask||0.00 x 1000|
|Day's Range||173.71 - 178.72|
|52 Week Range||112.50 - 180.00|
|Beta (3Y Monthly)||1.88|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 30, 2018 - May 4, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||186.19|
[Editor's note: This story was previously published in January 2019. It has since been updated and republished.]Amazon (NASDAQ:AMZN) has been one of the more impressive stocks of the past 25 years. In fact, AMZN now has returned well over 100,000% from its initial public offering (IPO) price of $18 ($1.50 adjusted for the company's subsequent stock splits). A large part of the returns has come from two factors. First, Amazon has vastly expanded its reach. What originally was just an online bookseller now has its hands in everything from cloud computing to online media to groceries. And its shadow is even larger …Amazon's buyout of Whole Foods rattled the retail market. Similarly, its entry into healthcare by buying PillPack (as well as its healthcare partnership with Berkshire Hathaway (NYSE:BRK.B) and JPMorgan (NYSE:JPM))sent ripples through the healthcare sector. In response, Microsoft (NASDAQ:MSFT) teamed up with Kroger (NYSE:KR) to "build the grocery store of the future," and earlier this year announced a partnership with Walgreens (NASDAQ:WBA) to fend off Amazon.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Hot Stocks Leading the Market's Blitz Higher Secondly, as a stock, AMZN has managed the feat of keeping a growth stock valuation for over two decades. I've long argued that investors can't focus solely on the company's high price-earnings (P/E) ratio to value Amazon stock. But however an investor might view the current multiple, the market has assigned a substantial premium to AMZN stock for over 20 years now, and there's no sign of that ending any time soon.It's an impressive combination, and one that's likely impossible, or close, to duplicate. But these five stocks have the potential to at least replicate parts of the Amazon formula. All five have years, if not decades, of growth ahead. New market opportunities abound. And while I'm not predicting that any will rise 100,000% -- or 1,000% -- these five stocks do have the potential for impressive long-term gains.Source: Chris Harrison via Flickr (Modified) Square (SQ)Admittedly, I personally am not the biggest fan of Square (NYSE:SQ) stock. I like Square as a company, but I continue to question just how much growth is priced into SQ already.Of course, skeptics like myself have done little to dent the steady rise in AMZN stock. And valuation aside, there's a clear case for Square to follow an Amazon-like expansion of its business. Back in January, Instinet analyst Dan Dolev compared Square to Amazon and Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG), citing its ability to expand from its current payment-processing base:"In 10 years, Square is likely to be a very different company helped by accelerating share gains from payment peers and relentless disruption of services like payroll and human resources."Just as Amazon used books to expand into ecommerce, and then ecommerce to expand into other areas, Square can do the same with its payment business. The small business space is ripe for disruption, as Dolev points out. Integrating payments into payroll, HR, and other offerings would dramatically expand Square's addressable market - and lead to a potential decade or more of exceptional growth.Again, I do question whether that growth is priced in, with SQ trading at well over 90x forward earnings. But if (again, like AMZN) Square stock can combine a high multiple with consistent, impressive, expansion, it has the path to create substantial value for shareholders over the next five to 10 years.Source: Daniel Cukier via Flickr JD.com (JD)In China, JD.com (NASDAQ:JD) is the company closest to following Amazon's model. While rival Alibaba (NYSE:BABA) gets most of the attention, it's JD.com that truly should be called the Amazon of China.Like Amazon (and unlike Alibaba), JD.com holds inventory and is investing in a cutting-edge supply chain. It, too, is expanding into brick-and-mortar grocery, like Amazon did with its acquisition of Whole Foods Market. A partnership with Walmart (NYSE:WMT) should further help its off-line ambitions. JD.com is even cautiously entering the finance industry.At the moment, however, JD stock is going in the exact opposite direction of AMZN. The stock has seen a slow recovery after last year's brutal plunge as the trade war and the arrest of the company's CEO killed all its gains. So have mixed earnings reports and a Chinese bear market.Clearly, there are myriad risks here, even near the lows. But AMZN saw a few pullbacks over the years as well. And while JD may never rise to the scale of Amazon or even out-compete Alibaba, at its current valuation it doesn't have to. * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? If investor confidence returns, JD has a path to enormous upside. And even with the near-term jitters facing the stock, the long-term strategy still seems intact, and likely the closest in the market to that of Amazon.Source: Shopify via Flickr Shopify (SHOP)Ecommerce provider Shopify (NYSE:SHOP) probably doesn't have quite the same opportunity for expansion as Square. And it, too, has a hefty valuation, along with a continuing bear raid from short-seller Citron Research.But I've remained bullish on the SHOP story, even though valuation is a question mark. Shopify is dominant in its market of offering turnkey ecommerce services to small businesses. That's exactly where consumer preferences are headed: small and unique over large and bland. And because of offerings like Shopify (and Amazon Web Services), those small to mid-sized businesses can compete with the giants.Meanwhile, Shopify does have the potential to expand its reach. Just 29% of revenue comes from overseas, a proportion that should grow over time. It's moving toward capturing larger customers as well through its "Plus" program, picking up Ford (NYSE:F) as one key client.The development of an ecosystem for suppliers and the addition of new technologies (like virtual reality) give Shopify the ability to offer more value to customers and to take more revenue for itself.Like SQ, SHOP is dearly priced. But both companies have an opportunity to grow into their valuations. And considering long runways for Shopify's adjacent markets, it should keep a high multiple for some time to come. As a stock, if not quite as a company, SHOP has a real chance to follow the AMZN formula for long-term upside.Source: Shutterstock Roku (ROKU)Roku (NASDAQ:ROKU) might have the best chance of any company in the U.S. market to follow Amazon's strategic playbook. The ROKU stock price is a concern. But perhaps even more so than Square, Roku now isn't what Roku is going to be in ten years.The hardware business is a loss leader, but one that allows Roku to serve as the gateway to content for millions of customers. As the company pointed out after recent earnings, it's already the third-largest distributor of content in the U.S. The Roku Channel is seeing increasing viewership. It's already up to more than 27 million viewers!The company offers pinpoint targeting of advertisements without the messy data problems afflicting Facebook (NASDAQ:FB). * 9 U.S. Stocks That Are Coming to Life Again Roku is becoming increasingly embedded in TVs, though a deal between Amazon and Best Buy (NYSE:BBY) raised some fears about those software efforts going forward.It has a plan to roll out home entertainment offerings like speakers and soundbars, creating a long-sought integrated experience. It could even, as it grows, look to develop or acquire content itself, positioning Roku not as just a conduit to Netflix (NASDAQ:NFLX) but a rival.The bull case for Roku stock is that its players are like Amazon's books not a great business on their own, but a way to garner customers and get a foot in the door of the exceedingly valuable media business.What Roku does now that it has entered will determine the fate of ROKU stock. But the amount of options and still a somewhat modest market cap (under $5 billion) mean that betting on its strategy could be a lucrative play.Source: Workday Workday (WDAY)Workday (NASDAQ:WDAY) is starting to look like the enterprise software version of Amazon. Its core HR product has driven huge gains in WDAY stock, which now has a $36 billion market cap. But Workday is just getting started.The company previously announced that it would buy Adaptive Insights to build out its financial planning capabilities. It has already rolled out analytics and PaaS (platform-as-a-service) offerings that add billions to its addressable market.Here, too, valuation looks stretched, to say the least, but the story here still looks attractive. Workday is never going to be as famous as Amazon, or as large. But if its strategy works, it will be as important to, and as embedded with, its corporate customers as Amazon is with its consumers.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post 5 Stocks That Could Be the Next Amazon appeared first on InvestorPlace.
Key Updates from Amazon, eBay, and Alibaba(Continued from Prior Part)CounterfeitingCounterfeiting has made it to Amazon’s (AMZN) list of risk factors that are worth bringing to the attention of regulators. In its 2018 annual regulatory filing,
For each major celebrity that relies on Shopify to sell their goods online, there are likely thousands of entrepreneurs who rely equally on Shopify's platform to "fulfill their dreams," Cramer said during his daily "Mad Money" show Wednesday. Shopify offers small customers services like Shopify Payments and Shopify Shopping that eliminate a third party and hidden fees. Shopify isn't the only company that helps small businesses thrive, Cramer said.
NEW YORK, Feb. 14, 2019 -- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors,.
Eureka! That's right, eureka, as in periodically you hit an eureka moment where it all becomes clear, that there is something bigger going on out there and you really need to be face to face with it to see it. Who else empowers individuals?
CNBC's Jim Cramer explains why the market may not be able to handle an upcoming surge in IPOs. The "Mad Money" host also sits down with the CEOs of IFF and Tableau Software. In the lightning round, Cramer gives two health-related stocks his diagnosis.
Shopify Inc (NYSE: SHOP ) reported some impressive holiday sales numbers, but the stock took a big hit after guidance fell short of the market’s expectations. Shopify revenue was up 54.3 percent to $343.86 ...
After tech stocks ended 2018 on a treacherous note, the new year has brought renewed prosperity to the sector. Software stocks in particular are rallying.Adobe Systems (NASDAQ:ADBE) is no exception. From its recent low of $205 per share, the Adobe stock price is back up to $258. That puts ADBE stock within striking range of its all-time high price of $277.Across the sector, investors are chasing stocks to fresh new heights. On Monday, a variety of cloud and software plays hit 52-week or all-time highs. Among the names in that category were Shopify (NYSE:SHOP), Coupa Software(NASDAQ:COUP), Smartsheet (NYSE:SMAR), Atlassian (NASDAQ:TEAM), Workday (NASDAQ:WDAY), and VMware (NYSE:VMW), among others.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 U.S. Stocks That Are Coming to Life Again So Adobe stock should be going up, since the sector is on fire. Adobe's recent strong performance has little connection to its own particular fundamentals. And given the hotness of the tech sector, savvy traders should consider selling tech stocks and taking profits at this point. For Adobe, 2018 Was a Great YearAdobe has delivered impressive growth in recent years, and that trend continued in 2018. Rather remarkably, the revenue increases of both major Adobe business units were almost equal. The company's Digital Media unit, which accounts for roughly a third of its revenue, generated top-line growth of 27%. The sales of Adobe's core Digital Media business, which accounts for around 70% of Adobe's revenues, increased by 26%. With the revenue of both major divisions increasing more than 25% annually, the company is clearly doing well.You may have seen some griping about Adobe's last earnings report of 2018. The company's earnings per share did come in below analysts' consensus estimate, but its revenue came in above the consensus outlook. The earnings shortfall was due to costs related to Adobe's acquisition of Marketo. In the long-run, a near-term earnings miss due to M&A won't affect the company's outlook meaningfully.What is important is that Adobe is no longer just the world's best image-software company; it now offers a broader business solutions package. Adobe purchased both Marketo and Magento recently. Marketo does B2B marketing while Magento offers digital-marketing solutions. By offering its customers a rich suite of software solutions, Adobe has gained many synergies.Adobe's revenue jumped nearly 25% last year. Probably not coincidentally, Adobe stock rallied 29% in 2018. Investors tend to price a company like Adobe based on its sales, so it makes sense that ADBE stock rose during a year in which its revenue surged. However, the situation could change in 2019. Adobe Stock Is ExpensiveThose who are bearish on ADBE stock can point out an obvious, if true, statement: Adobe stock is really pricey. On a trailing basis, Adobe stock has a price-earnings ratio of 50. Now, to be fair, ADBE had some one-tine costs in 2018. But the company's forward P/E ratio stands at 27. That's still quite pricey, especially since analysts have already baked healthy growth into their 2019 projections.On a price-sales basis, ADBE stock looks even more expensive. It is currently going for more than 14 times its sales. The normal rule of thumb for fast-growing tech stocks is that they are valued fairly if they're trading at ten times their sales.Consider that even if Adobe's revenue jumps 24% again in 2019, it will still be selling for a touch over ten times its sales. Various peers of Adobe are selling for between eight and ten times their sales at the moment, suggesting that Adobe stock price could drop considerably if the valuation of ADBE stock drops to levels that are more in-line with the rest of the tech sector. How Much Can the Experience Cloud Grow?The big question for ADBE stock, at least for long-term investors, is how far its so-called experience cloud can run. After integrating Marketo, Magento, Tubemogul, and other acquisitions, Adobe is now seen as a leader in the still-emerging marketing-cloud space. As is often the case in tech, Adobe's first- mover advantage in that area appears to be huge.Bulls are buying up Adobe stock because of their belief that the company will become the entrenched leader in the space. Even so, it's worth asking just how much that achievement would be worth. Consider that the shares of the current leader of the marketing-software space, Salesfore.com (NYSE:CRM), are selling for just 9.5 times its sales.Adobe stock would have to drop around 30% to reach Salesforce's valuation. And Salesforce isn't exactly considered a value stock ,either. Salesforce has posted average annual revenue growth of 28% over the past five years, and analysts don't expect that to change much. Does Adobe stock deserve such a large premium over Salesforce's shares? The Verdict on Adobe StockGiven the great enthusiasm we are seeing for tech and software stocks, it seems tempting to hold Adobe stock into its earnings which are slated to be announced next month. However, I'd urge investors to be cautious about ADBE stock. Much of the recent gains of Adobe stock price have been triggered by the rallies of other cloud names.But Adobe still has to prove its own merits. Analysts will be looking at the company's M&A costs closely. And with 25% revenue growth already baked into investors' expectations, Adobe stock may not have all that much room to advance further even if its numbers are relatively strong.With tech stocks on fire, it seems like a good time to take some chips off the table, whether we're talking about ADBE stock or other names in the sector that are making fresh, new all-time highs.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 7 Forever Stocks to Buy for Long-Term Gains * 5 Self-Driving Car Stocks to Buy Compare Brokers The post Investors Should Sell Adobe Stock appeared first on InvestorPlace.
Shopify (NYSE:SHOP) stock's strong fourth-quarter earnings don't seem to be having a positive effect on Shopify stock. It was down more than 4% in midday Feb. 12 trading, though it closed up 1.4%. Did we see a buy on rumor, sell on news situation? Absolutely. There's nothing I can see in its Q4 2018 results that merit a negative outlook. Let's have a look at the quarter's finer points. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Q4 2018 Results for SHOP StockFirst, the basics. Revenues in the fourth quarter were $343.9 million, 54% higher than a year earlier. On the bottom line, it made 26 cents a share on an adjusted basis, 73% higher than last year, and six cents clear of analyst estimates. Now let's dig a little deeper. * 9 U.S. Stocks That Are Coming to Life Again Any Shopify earnings report also must include Gross Merchandise Volume (GMV) and Monthly Recurring Revenue (MRR) data. GMV indicates how Shopify's customers are doing in the quarter while MRR means the stickiness of Shopify's business model. Both ought to be higher. Much higher. GMV in the fourth quarter was $14 billion, 54% higher than a year earlier, while MRR was $40.9 million, 37% higher than in Q4 2017. For the entire fiscal year, GMV was $41.1 billion, 56% higher than a year earlier. SHOP generates revenue from two areas: Subscription Solutions and Merchant Solutions. Of the two, its subscription revenue is more profitable. So, while its merchant solutions saw revenues increase by 63% in the quarter to $210.3 million compared to 42% growth to $133.6 million for subscription revenue, Shopify stock's subscription business had gross profits that were more than 20% higher in the quarter. In an ideal world, Shopify's subscription revenues, the more recurring of the revenue streams, would exceed its merchant solutions segment. Nonetheless, 42% and 63% growth is nothing to sneeze at. Nor is a 53% increase in gross profits. Shopify Plus Growth ContinuesShopify Plus is the company's service for larger businesses. While it charges $29 a month to smaller firms to use its e-commerce platform, it larger companies pay $2.000 or more per month for the privilege. As more large businesses sign on to Shopify Plus, it's possible subscription revenues could pass merchant solutions despite the fact merchant solutions' revenues increase as the company's merchants do better. In the fourth quarter, Shopify Plus contributed 25% of its $40.9 million in MRR, up from 21% a year earlier. More importantly, it grew the number of Shopify Plus merchants by around 50%. More subscribers multiplied by higher GMV equals higher revenue and profits.Q4 2018 was a win for Shopify in the big business arena. Another area of growth for the company is international sales. During the quarter it launched native language capabilities on its platform, which can now accommodate seven languages: English, German, Japanese, French, Spanish, Brazilian, Portuguese, and Italian. Shopify's building an e-commerce platform whose foundation goes both wide and deep -- the type of revenue, geographic location, type of customer -- providing an ongoing pathway for growth. The Bottom Line on Shopify StockAt the beginning of this article, I stated there wasn't anything in the company's Q4 report that merits a negative outlook. Reuters begs to differ. "Shopify Inc beat analysts' estimates for quarterly profit on Tuesday, but a slowing rate of growth in total sales by vendors using the ecommerce company's software sent its U.S.-listed shares down about 7 per cent before the bell," Reuters stated Feb. 12. "Shopify said gross merchandising volume rose just 54 per cent compared with a 65 per cent jump in the same period a year earlier."If you're questioning Shopify stock's resilience. Don't. Growth rates tend to slow as revenues grow. It's part of companies maturing. For example, a company that increases 65% from $100,000, finishes the year at $165,000. If it grows by 54% in the next year, it ends the second year with $254,100, 154% higher than where it started two years earlier.I don't know about you, but I'll take 54% growth on a bigger pie over 65% of a smaller one, every day of the weak. Shopify delivered an outstanding fourth quarter. Unless something unforeseen pops up between now and the end of the year, I don't see how it doesn't hit $200. As 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 * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 7 Forever Stocks to Buy for Long-Term Gains * 5 Self-Driving Car Stocks to Buy Compare Brokers The post Shopify Orders Up Strong Q4: Is $200 a Done Deal? appeared first on InvestorPlace.
Shares of Shopify Inc. are up 3.5% in premarket trading Wednesday after RBC Capital Markets analyst Ross MacMillan upgraded the stock to outperform from sector perform and upped his target price to $230 from $180. "We expect a return to net new merchant growth this year, with international a significant opportunity," he wrote. MacMillan also sees room for Shopify to improve its monetization given its relatively low take rate currently. The upgrade comes a day after Shopify reported better-than-expected results but delivered a light outlook for its operating margins. The stock has gained 27% over the past three months, while the S&P 500 has risen 0.8%.
On the Executive Decision segment of "Mad Money" Tuesday, Jim Cramer spoke with Harley Finkelstein, COO of Shopify Inc. Cramer said the early selloff was likely due to in-line guidance and because SHOP was up so much coming into the print. Shopify now has 820,000 merchants on its platform, up from roughly 600,000 a year ago, Finkelstein said.
Shares of Shopify (NYSE:SHOP) initially dropped after the company reported what was essentially a double-beat-and-raise fourth quarter earnings report that checked off all the right boxes. But as of this writing, Shopify stock had recovered its initial losses and closed up 1.4% from pre-earnings levels.There's some worry on the Street that the initial weakness in Shopify stock following great numbers is a sign of a maxed out stock. To a degree, that is what's happening here. Heading into the Q4 print, Shopify stock was up 25% year-to-date, and more than 40% since Christmas Eve. Against that rally, it is only natural that Shopify stock pulls back as investors "sell the news".But, "the news" here is very good. Revenue growth was above 50% again. So was gross merchandise volume (GMV) growth. Subscription revenue growth was yet again above 40%. Merchant solutions revenue growth was above 60%. Gross payment volume (GPV) was right around 40%. Gross margins were stable. Operating margins improved. The guide was healthy, and implied continued robust revenue and profit growth.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Forever Stocks to Buy for Long-Term Gains Overall, Shopify's quarter was very, very good, and underscored that this company remains on a long term winning trajectory. As such, weakness is Shopify stock is just a near-term phenomena as this stock retreats from overbought conditions. Once it does, the stock will resume it's uptrend, and $200 prices look doable later in 2019. Blowout Quarters Are the Norm for SHOPShopify's fourth-quarter numbers were really good. Broadly speaking, revenue growth remains robust, and isn't slowing by all that much, nor is it expected to slow much in the future. The underlying revenue drivers remain healthy as all operational metrics continue to grow at a robust rate, too. Gross margins are stable. Operating margins continue to expand with scale. Profits are roaring higher and expected to continue to do so next year.But, the stock is down. Why? Because Shopify stock had rallied 40%-plus over the past six weeks in anticipation of strong numbers, and had rushed into technically overbought territory, with the Relative Strength Index over 70. Thus, SHOP was due for a pullback.From this perspective, investors shouldn't read too much into the post-earnings drop in Shopify stock. It is simply a healthy and natural pullback after a torrid run higher. From here, the stock will likely consolidate around the $160's, let the technicals catch up, and then proceed to rally to $200 by the end of the year. Long-Term Fundamentals Are HealthyThe important thing with Shopify stock is that strong Q4 numbers underscore that the long-term fundamentals remain healthy.In the big picture, Shopify is democratizing the supply of commerce services so that anyone can sell anything to anyone.In doing this, Shopify is part of the coordinated economy megatrend wherein companies are turning single-supplier ecosystems into multi-supplier ecosystems, and in so doing, are producing optimal outcomes for consumers and suppliers and unlocking tremendous value. This megatrend isn't slowing any time soon, and Shopify has mitigated competition with respect to democratizing and coordinating seller services. As such, over the next several years, Shopify should remain a huge growth company powered by the continued democratization of commerce services.Shopify is just scratching the surface of its global potential with GMV of $41.1 billion in 2018, versus a global consumer spend pool that measures in the trillions of dollars. Thus, while today's 50%-plus revenue growth rates will slow with scale, they won't slow by much since Shopify's global penetration rate is so low, meaning this will remain a 30%-plus revenue growth company for the foreseeable future. During that stretch, gross margins should remain healthy, and opex rates should come down with scale, implying tremendous opportunity for operating margins to race higher.All together, I think $10 in EPS is doable by 2025, assuming a $7.5 billion revenue base and 20% operating margins. Application software stocks normally trade around 34 forward earnings. Based on that average multiple, a reasonable 2024 price target for SHOP stock is $340. Discounted back by 10% per year, that equates to a 2019 price target of over $200. * Buy These 5 Stocks to Play the Megatrend of the Century Bottom Line on Shopify StockShopify stock is a long term winner with huge growth potential in a multi-year window. Right now, the stock is failing to rally on good news because it had already rallied so much in anticipation of that good news. Ultimately, this weakness will end quickly, and when it does, Shopify stock will reverse course and march towards $200.As of this writing, Luke Lango was long SHOP. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Every 20-Year-Old Should Buy * 10 Best Dividend Stocks to Buy for the Next 10 Months * 10 Monster Growth Stocks to Buy for 2019 and Beyond Compare Brokers The post Why Shopify Stock Could See $200 in 2019 appeared first on InvestorPlace.
What happened to the long-awaited pullback the stock market was supposedly starting last week? Jim Cramer asked his Mad Money viewers on Tuesday evening. Some reputable people -- like one of Wall Street's most accurate observers, Morgan Stanley's equity chief Mike Wilson -- are calling for an earnings recession later this year, Cramer pointed out.