224.29 -0.03 (-0.01%)
After hours: 4:02PM EDT
|Bid||224.83 x 800|
|Ask||224.96 x 800|
|Day's Range||219.17 - 225.99|
|52 Week Range||117.64 - 225.99|
|Beta (3Y Monthly)||1.71|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 30, 2018 - May 4, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||188.80|
SIOUX FALLS, SD / ACCESSWIRE / April 16, 2019 / Chipotle Mexican Grill, Shopfiy and Bed Bath & Beyond have topped MarketBeat's list of most-upgraded stocks during the month of April. These three stocks ...
The Dow Jones Industrial Average, which barely lost ground last week, is keeping losses tidy again in the stock market today.
Kohl's, Shopify, Canadian Solar, Sunworks and Sunrun highlighted as Zacks Bull and Bear of the Day
[Editor's note: This story was previously published in February 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.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Marijuana Companies: Which Pot Stocks Should You Buy? 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.Second, 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. Instinet analyst Dan Dolev has 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 out own Josh Enomoto 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 60% higher than this time last year. 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. * 7 AI Stocks to Watch with Strong Long-Term Narratives Clearly, there are myriad risks here, although so far this year JD.com has corked its way well out of the doldrums of 2018. 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.As investor confidence returns, JD has a path to enormous upside. 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 and still climbing this year. SHOP has put on 42% since the beginning of the year. 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). * 10 Dow Jones Stocks Holding the Blue Chip Index Back 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, and Disney's new streaming service could be an issue.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.
Shopify Inc. (SHOP) (SHOP.TO), the leading multi-channel commerce platform, today announced the launch of its first North American integrated brand campaign, “Let’s Make You a Business.” The new ad campaign encourages the next wave of independent business owners to turn their big ideas into thriving businesses, and highlights how Shopify provides the trusted tools necessary to start, grow, and manage a business. “Starting and running a business unlocks incredible freedom for entrepreneurs, but it can also be a daunting process,” said Jeff Weiser, Chief Marketing Officer, Shopify. “Shopify exists to help merchants every step of the way, and our new campaign is meant to inspire future entrepreneurs to start their own journey.
For us, stock picking is in large part the hunt for the truly magnificent stocks. Not every pick can be a winner, but when you pick the right stock, you can win big. One such superstar is Shopify Inc. (NYSE:SHOP), which saw i...
Here's What's New with BABA, JD, GRPN, and SHOP(Continued from Prior Part)Microsoft is eyeing Shopify’s marketShopify (SHOP) powers the digital stores of hundreds of thousands of merchants. Some 800,000 businesses operate stores on Shopify’s
Few stocks in the market have the growth opportunity that Etsy (NASDAQ:ETSY) does. Etsy's online platform seems perfectly suited for what consumers today want: unique and hand-crafted rather than mass-produced and widely available. The spectacular growth Etsy stock has posted in recent years, then, seems likely to continue for some time to come.Source: Meaghan O'Malley via Flickr (Modified)Meanwhile, the company is taking a higher percentage of volume on its platform, thanks to a fee hike last year. The combination was a key reason why I recommended ETSY stock last year.But I backed off in January, questioning valuation at $50 per share. At $68, even after a blowout fourth quarter report in February, Etsy looks simply too expensive. There's a great growth story here, admittedly. At this point, however, even management targets and an still-hefty out-year multiple look priced in.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Risky Stocks to Watch as Earnings Season Kicks Off Valuation Isn't All That MattersAt the moment, ETSY trades at over 13x revenue and over 60x 2020 EPS estimates. Those multiples are big, but admittedly not terribly out of place in the current market environment.Lyft (NASDAQ:LYFT) (another platform play, even if an obviously different one from Etsy) is unprofitable, yet commands a roughly $20 billion valuation. Match Group (NASDAQ:MTCH) is growing much more slowly - yet still receives a 9x multiple to sales, and trades at 27x 2019 EPS estimates.What we've seen in the tech market of the past few years is that valuation alone doesn't make a bear case and that a seemingly high-priced stock still can move higher. Square (NYSE:SQ) and Shopify (NYSE:SHOP) have looked overvalued for some time. SaaS (software-as-a-service) stocks seem to keep moving higher. Over the past few years, ignoring a stock simply because it's "expensive" has proven to be a good way to miss out on big upside.Still, ETSY is awfully expensive. Revenue growth of 37% in 2018 and an estimated 31% this year certainly seems to merit a hefty valuation. But in both years, Etsy is benefiting from fee increases, which aren't going to happen every year. And the company's own targets suggest that something close to perfection is priced in. Where ETSY Goes If Management DeliversAt its Investor Day last month, Etsy detailed its five-year targets. It's telling that Etsy Inc stock actually was a bit wobbly on the news, selling off by as much as 5% before recovering most of its losses. The outlook is strong to be sure, but the question is whether it is strong enough, especially with ETSY still not far from all-time highs.Etsy is projecting annual GMS (gross merchandise sales) growth of 16-20%. Revenue should grow slightly faster than GMS, as Etsy's "take rate" climbs modestly over that stretch. And Adjusted EBITDA margins are targeted to 30% or higher, up from a 23.1% print in 2018 and guidance for 23-25% this year.Assume then, that revenue grows 19% a year, one point faster than the midpoint of GMS growth guidance. In 2023, Etsy revenue would be $1.43 billion. Adjusted EBITDA margins of 32% suggest EBITDA of $458 million.D&A is likely to remain relatively low: it was $26.7 million in 2018, and might grow to $30 million or so. At an effective tax rate of 21%, then, net income would reach about $338 billion. The share count is going to expand owing to stock-based compensation: diluted shares rose about 4% in 2018, to 127 million. At the same rate, by 2023, the count should be about 154 million.So management's own targets suggest $458 million in EBITDA and about $2.20 in EPS in 2023. If Etsy Inc stock returns 8% a year until then, it would trade at $92 four years from now. Can ETSY Stock Really Outperform?In other words, Etsy can hit its targets, Etsy Inc stock can return a 8% a year and it's still not enough. All that has to happen - and ETSY has to, in 2023, trade at 42x earnings and nearly 30x EBITDA.Those are enormous multiples. And, again, this model assumes targets are met. It assumes the economy doesn't slow down and perhaps depressing demand from some of the higher-dollar (and more profitable) items on Etsy's site. It assumes Etsy keeps driving consistent revenue growth but starting in the second half of this year, Etsy doesn't have the benefit of the fee hike.Simply to get a reasonable return, basically everything has to go right for Etsy. And that, not just the high headline multiples, is the real problem for ETSY stock. It might be why the stock has settled lower since spiking after the blowout Q4 report. At a certain point, valuation prices in all of a company's potential and Etsy Inc stock certainly seems to close to that point.After earnings, Tim Biggam made the case for shorting ETSY and that trade actually has done reasonably well since then. I'm not quite that bearish: valuation is a poor reason to short, as tech has proven in recent years, and I do like both the Etsy business model and Etsy management.But again, valuation matters. And this increasingly looks like a stock priced for perfection. Admittedly I thought something similar at $50, but from here, the high ETSY stock price offsets seemingly all of the optimism toward the Etsy business.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Medical Marijuana Stocks to Cure Your Portfolio * 8 Best Stocks to Buy for an April Rally * Top 20 Stocks to Buy for 20-Somethings! Compare Brokers The post This Outrageous Valuation Is Going to Catch up to Etsy Stock appeared first on InvestorPlace.
Here's What's New with BABA, JD, GRPN, and SHOP(Continued from Prior Part)1688.com sales soared 120%Alibaba’s (BABA) China-focused wholesale marketplace, 1688.com, recorded strong growth in 2018, a top Alibaba executive revealed this month.
The Latest Updates from Amazon and eBay(Continued from Prior Part)Fear of competition from AmazonIn an apparent attempt to make its marketplace more attractive to third-party sellers, Amazon (AMZN) is ditching the practice of placing its own
Shopify Inc. , the leading multi-channel commerce platform, plans to announce financial results for its first quarter ended March 31, 2019 before markets open on Tuesday, April 30, 2019.
One of my favorite long-term growth stocks in the market is e-commerce solutions provider Shopify (NYSE:SHOP). I got bullish on SHOP stock in mid-to-late 2017, when it became obvious that decentralized, direct-to-consumer commerce was the future of retail, and that Shopify provided the building blocks for that future.SHOP was a sub-$100 stock. In the intervening 18 months, I've reiterated my bull thesis time and time again, put Shopify in my high-growth, long-term trading group STARS, and all the while, SHOP stock has more than doubled.But, even as a long-term bull, I think it may be time for the red-hot Shopify stock to take a breather here around $200.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Still a Long-Term PlayTo be sure, this isn't to say that Shopify isn't a great long term investment anymore. On contrary, Shopify is still one of the market's best multi-year investments, powered by some of the most robust secular growth tailwinds in the global economy. But, long-term gains don't always equal near-term gains. Sometimes, even the market's brightest stars get ahead of themselves, and need to cool off. * 8 Best Stocks to Buy for an April Rally That's exactly where I think we are with Shopify stock. The long-term growth outlook remains very healthy. The shares will head way higher in the long run. But, near-term upside in SHOP stock looks limited by three factors: increasing competition, slowing economic expansion, and a full valuation. Near-Term Risks Are MountingSHOP stock has had a tough past few weeks, and not without reason. * Facebook (NASDAQ:FB) launched Instagram Checkout, which some see as a threat to Shopify given that it could ultimately cut Shopify out of the equation in Instagram commerce. * Square (NYSE:SQ) revamped its Square Online Store to be a more robust Shopify competitor. Shopify and Mailchimp terminated their partnership over data sharing disagreements. * News broke that Microsoft (NASDAQ:MSFT) is getting into the e-commerce solutions game. * Widely followed short seller Citron Research put out a bearish note on SHOP stock, calling for a $100 price tag within the next 12 months.Add these up and the news flow related to Shopify has taken a sharp turn for the worse of late.Broadly speaking, all these developments have one central theme: Shopify isn't the only game in town. Everyone is starting to realize that decentralized, direct-to-consumer commerce is the future. Consequently, everyone is jumping into this space. Facebook's next big move is commerce and selling things directly through their ecosystem. Square wants to get into e-commerce after dominating brick-and-mortar commerce for small to medium sized merchants. Microsoft sees the opportunity.Amid all this rising competition, the global economy is slowing, and Shopify stock is trading at a rather rich 20 times trailing sales. So, in the near term, you have rising competition headwinds converging on a slowing economic expansion backdrop and a rich valuation. That combination ultimately implies sideways trading for the foreseeable future. Long-Term Upside Remains HealthyTo be 100% clear, nothing about this near-term noise affects the long-term growth fundamentals underlying SHOP stock.First, Instagram Checkout will serve as a complement to Shopify, and retailers/brands will have both, since not all sales transactions happen through Instagram (only a small portion do). Second, Square is miles behind Shopify in the e-commerce solutions game, and even if they do gain considerable market share, the decentralized, direct-to-consumer market is growing fast enough to accommodate multiple high-growth players. Third, losing Mailchimp isn't exactly a big deal for Shopify. Fourth, see the Square point, and just sub in Microsoft. Fifth, Citron has been bearish before, and they were dead wrong last time. * 7 Biometric Stocks to Watch as AI Rises In other words, none of the near-term negative developments have any long-term negative implications for SHOP stock. In the big picture, Shopify provides the building blocks for retailers and brands to establish an online storefront -- which has become essential in today's direct-to-consumer retail world -- and they are the best in class at doing so. Of course, at scale, they won't be the only ones providing these building blocks. But, a natural assumption is that given the company's leadership position, experience, management, and track record, Shopify will stay on top of this industry for the foreseeable future.Assuming so, given that Shopify's gross merchandise value amounted to less than 1.5% of global e-retail sales last year, the runway for growth in Shopify remain tremendous. I maintain that this company has $10-plus earnings-per-share potential within the next several years, and that this potential creates a pathway for a $300-plus SHOP stock price in the long run. Bottom Line on SHOP StockAll in all, SHOP stock remains a long-term winning investment. But, even the best long-term winning investments run into near-term valuation friction from time to time, and that friction keeps shares stuck in neutral for a while. That's where we are with Shopify stock today. As such, while long-term upside remains compelling, near-term upside is capped.As of this writing, Luke Lango was long SHOP, FB, and SQ. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Data Center Buys That Deliver Sizable Income * 7 High-Risk Stocks With Big Potential Rewards * 3 Marijuana Stocks to Watch as New York, New Jersey Delay Legalization Compare Brokers The post Shopify Stock Isn't Doomed, But It's Limited Near Term On Three Factors appeared first on InvestorPlace.
The Latest Updates from Amazon and eBayPrime members slow to embrace Whole Foods shopping Amazon (AMZN) cut prices on hundreds of items at Whole Foods stores this month. Prices fell an average of 20%. Since Amazon took hold of Whole Foods in August
Shopify’s software is used by 800,000 businesses in about 175 countries. The back story: Shopify stock (ticker: SHOP) has rallied about 40% year-to-date due to the company’s impressive revenue growth. What’s new: Baird analyst Colin Sebastian reiterated his Outperform rating for Shopify stock on Thursday, citing the company’s impressive win-rates against its competitors.
Shares of Shopify Inc. are up 0.7% in premarket trading Friday after Baird analyst Colin Sebastian upped his price target to $208 from $188. "Our latest checks suggest Shopify continues to consolidate share, despite intensifying competitive concerns (i.e., Adobe , Facebook/Instagram , Microsoft , Salesforce , Square ), and believe it will take years and significant investment for others to catch up," Sebastian wrote. "While we would not dismiss the risks/opportunities for any of these companies, we note that Shopify's platform required >$1 billion in R&D and marketing investment just over the past four years, and remains differentiated from current alternatives." He said the stock still deserves its lofty multiple of 10 times 2020 estimates for enterprise value to revenues, as that multiple is well below those of other hot software names like Atlassian Inc. , which currently trades at 19 times. Shopify shares have climbed 41% in the past three months, as the S&P 500 has gained 14%.