|Bid||306.84 x 800|
|Ask||306.99 x 1100|
|Day's Range||302.40 - 307.59|
|52 Week Range||117.64 - 315.60|
|Beta (3Y Monthly)||1.52|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 30, 2018 - May 4, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||261.83|
E-commerce behemoths like Amazon have long carried the blame for the perceived death of brick-and-mortar retail, but Shopify COO Harley Finkelstein feels differently. He joins Yahoo Finance's Jennifer Rogers, Myles Udland, and Brian Cheung to discuss.
Shopify Inc. , the leading multi-channel commerce platform, is hosting an Investor Day in Toronto, Canada today, Wednesday, June 19, 2019 at its annual partner conference, Shopify Unite, to provide investors and analysts with an overview of the company's performance and an update on its product roadmap and long-term strategy.
Facebook (NASDAQ:FB) stock has bounced around over the past few years. In 2017, FB stock rallied as the consensus thesis was that FB was transforming into a permanently dominant player in the continuous-growth digital-ad industry.Source: Shutterstock But in 2018 that thesis was called into question amid a flurry of data-privacy scandals, which sparked harsh consumer and regulator backlash. FB stock dropped in response to the scandals. FB has rebounded in 2019, as it has moved past those data-privacy concerns and maintained its dominant position in the digital-ad world. * 5 Stocks to Buy for $20 or Less Amid this wild roller-coaster ride, it is natural for investors to ask: what's next? Will Facebook stock stay in rally mode? Or will it retreat again?InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe answer is clear. Facebook stock will stay in rally mode. But the rationale for that conclusion is not clear. The reason that FB stock will stay in rally mode has very little to do with its advertising business, which has been the heartbeat of Facebook for the past several years. Instead, FB stock's next leg higher will be driven by the company's big push into commerce.The thesis is simple. Around 2.7 billion people interact with Facebook's ecosystem everyday. Right now, Facebook monetizes those people through ads. But, when you have 2.7 billion people interacting with each other and brands in your ecosystem every month, it is very easy to also throw in a commerce component, and turn those 2.7 billion pairs of eyeballs into 2.7 billion shoppers. By doing that, Facebook can dramatically increase its addressable market and expand its long-term opportunity.The improvement in FB's results that will be triggered by this commerce push is not priced into FB stock today, giving investors a golden opportunity to buy into a high-growth stock at a very reasonable price.Investors should buy FB stock because FB is going way higher in the long-run. Facebook's Push Into Commerce Is InevitableAs a backdrop, it's important to understand what's going on with Facebook's ad business. FB is a giant in the global-digital-ad world. That's naturally what happens when you have 2.7 billion people in your ecosystem; you attract ad dollars seeking the attention of those 2.7 billion pairs of eyeballs.That business is doing just fine. It's growing at a 20%-plus pace. But its growth is slowing. That isn't Facebook's fault. The whole digital-ad market is slowing. We are talking about a market that's going to go from 20%-plus growth in 2018 to single digit growth by 2023, mostly because more than 50% of ad dollars have already migrated to the digital channel.In other words, the runway for growth in the digital-ad industry is slowing, so digital ad growth rates across the whole industry, including Facebook, are falling. FB is looking for a way to combat this slowing growth trend.Fortunately, it's stumbled upon one very promising opportunity: commerce. Facebook's suite of apps is the online version of the world's "town square," s it's a natural place for commerce to take place. Consumers are interacting with each other and with brands very often through Facebook's platforms. Consumers are also learning about brands, products, services, places, experiences, etc. Layering commerce on top of those already naturally occurring dynamics is an easy thing to do.Consequently, FB is pivoting full-force into commerce. It's launched Marketplace,an e-commerce platform. FB has also partnered with Shopify (NYSE:SHOP), and it's looking into building a native currency. Inevitably, all these growth initiatives will one day enable FB to become an e-commerce hub. FB's Commerce Business Will Be HugeFacebook's push into the commerce world could be the beginning of something huge. Facebook's e-commerce business could eventually be nearly as big as its digital-ad business.About $280 billion were spent on digital ads last year, and that's projected to rise to $500 billion-plus in 2023. On the commerce side of the ledger, $2.8 trillion were spent on e-commerce last year, and, by 2021, that's expected to jump to nearly $5 trillion. In other words, the e-commerce-addressable market is about ten times the size of the digital-ad-addressable market.With 2.7 billion people in its ecosystem, FB doesn't need to turn all of its users into shoppers in order to have a huge commerce business. Let's say only 1 billion users eventually utilize Facebook for e-commerce in one form or another. Let's also say that the average annual spending on Facebook for those 1 billion users is about $500, or about 20% of total online per capita spending. That would translate into $500 billion in gross merchandise value. Assuming Facebook takes a 5% cut, that's $25 billion of e-commerce revenue for FB.The company's digital-ad business generated revenue of $55 billion last year.Thus, through e-commerce alone, Facebook has an opportunity to drive nearly 50% revenue growth over the next several years. That growth will be on top of the double-digit-percentage-annualized growth of the company's digital ad business. All of its revenue will carry high margins.Facebook's revenue and profit look poised to continue growing rapidly for the foreseeable future. Trading at just 20-times its forward earnings, FB stock is dirt-cheap, considering its robust profit growth potential at this point. The Bottom Line on FB StockFacebook stock has been on a wild roller coaster ride over the past several years. The next move in this stock will be another leg higher, powered by the company's big push into commerce. As that push unlocks tremendous long- term value, investors will buy into the recharged growth outlook, and FB stock will move higher.As of this writing, Luke Lango was long FB and SHOP. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post Buy Facebook Stock Because Its Commerce Future Is Bright appeared first on InvestorPlace.
Snap (SNAP) has partnered with Shopify (SHOP) to allow certain accounts to set up retail stores in its Snapchat app. The Shopify-powered Snapchat stores feature has initially rolled out to certain Snapchat influencer accounts, but there are plans to roll it out to creators, publishers, and brands later this year.
Within the next few weeks, users of Shopify Inc (NYSE: SHOP)'s digital platform will be able to order cannabis through an integration with ParcelPal Technology Inc (OTC: PTNYF), Benzinga has learned. ParecelPal is an on-demand delivery service that offers merchandise from retailers, restaurants, medical marijuana dispensaries and liquor stores in Vancouver, Calgary and Saskatchewan. The company also said it will be expanding to the rest of Canada soon.
If investors are looking to shop for market leadership, Shopify (NYSE:SHOP) definitely qualifies. But buying SHOP stock at today's prices also carries with it the burden of increased risk both off and on the price chart. Let me explain.Source: Shopify via FlickrI've been bullish on more than one occasion over the past couple years in e-Commerce business platform Shopify. Most recently, that optimism was immediately in front of notorious short-seller Citron Research promoting shares as having nowhere to go but down after a rapid run.It almost goes without saying our bullish viewpoint looked silly on the heels of that. Citron warned that SHOP stock was set to trade down $100 over the next 12 months. But as this clash of opinions on Shopify shares was during the first three trading days of the second quarter, Citron's bearish gain of roughly $16 in paper profits was also fleeting.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shopify Stock Took OffAt the same time, our discussed slightly-above-the-market entry price in SHOP was triggered only a handful of days later. And the stock has literally never looked back. In just over two months, Shopify shares have rallied from below $210 to north of $310 as of Wednesday's close.The $100 run-up and return of 47% versus the S&P 500's gain of less than 1% over the period not only shredded Citron's "nowhere but down" thesis, but also demonstrates SHOP stock's obvious market leadership. It also raises the specter of shares having a more credible 'nowhere to go but down' scenario play out. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 Bottom line, despite Shopify shares still being positioned as "best in class" -- a view shared by Citron, mind you -- "a real" rapid run in SHOP coupled with competition from Square (NYSE:SQ), Facebook (NASDAQ:FB) and possibly Microsoft (NASDAQ:MSFT), does make Citron's prior risky valuation concerns more sound.Some SHOP stock bulls may say this is a baseless opinion. I understand. Well-intentioned warnings of nosebleed P/E's or worries of other traditional metrics which appear priced for perfection are still far from perfect indicators for a growth company like Shopify. Still, a baseless SHOP stock on the price chart should have ironclad agreement among bulls (and bears), and that's a worry in the near-term. SHOP Stock Weekly ChartLooking at SHOP stock's weekly chart, my takeaway is Citron may finally get its $100 drop this year. With this rally, Shopify shares are lacking any kind of meaningful weekly basing patterns near current levels. The stock has also largely fulfilled any type of upside price targets from previous base breakouts.A correction of this magnitude would simply put shares into a testing position of Shopify's 50% retracement level. That's just above the short, flat base which had this strategist upbeat on shares back in early April.Along with this formidable technical support, the move would work out to a correction of roughly 32%. Since that's just over the classic 30% level generally accepted as constructive behavior in growth stocks, I'm confident a nice buying opportunity in SHOP stock would also be at hand.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post Wait for the Drop to Buy Shopify Stock appeared first on InvestorPlace.
While Square (NYSE:SQ) stock has gained a respectable 12.6% in the past year, that performance pales in comparison to the previous 12-month periods, when SQ stock nearly doubled each year.Source: Via SquareNot only that, the shares have also been disappointing when looking at other companies in the space. Consider that the annual return for Shopify (NYSE:SHOP) is a sizzling 91% while PayPal (NASDAQ:PYPL) stock has risen 37% and Visa (NYSE:V) is up 28%.Now the payments industry holds tremendous opportunity. One estimate is that the size is a whopping $110 trillion on a global basis. No doubt, technologies like cloud computing, mobile and AI (artificial intelligence) will continue to be disruptive forces.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYet despite all this, I still think there are some nagging risks with Square stock. Let's take a look: SQ Stock: GrowthSQ continues to grow at a fast pace. In the latest quarter, net revenues jumped by 43% and adjusted revenues spiked by 59%. The company also increased its full-year guidance.Yet there are some potential issues with the growth story. For example, gross payment volume increased by only about 27% to $22.6 billion. The Street, on the other hand, was looking for $22.8 billion.As well, the U.S. economy is showing some signs of weakness, as seen with a drop-off in job gains and sluggishness with retail sales. Businesses also appear to be pulling back on making investments because of the uncertainty regarding trade, especially with China. * 7 Stocks to Buy As They Hit 52-Week Lows If there is a recession or a serious slowdown, SQ could take big heat. The reason is that a big chunk of the company's revenue come from small businesses. And yes, they generally are disproportionately effected during economic hard times.According to Square's 10-K filing: "Small businesses frequently have limited budgets and limited access to capital, and they may choose to allocate their spending to items other than our financial or marketing services, especially in times of economic uncertainty or in recessions. In addition, if more of our sellers cease to operate, this may have an adverse impact not only on the growth of our payments services but also on our transaction and advance loss rates, and the success of our other services." Square Stock: ValuationEven though SQ stock is 30% off its 52-week high -- which was tipped in September -- the valuation is still far from cheap. Note that the forward price-to-earnings ratio is roughly 63x and the shares trade at about 8.3x sales. * 7 Dark Horse Stocks Winning the Race in 2019 Now a premium is deserved for a company with Square's strong platform, brand and customer base. But then again, if the growth rate starts to falter, there could easily be more downside. We already saw evidence of this in the latest earnings report. SQ Stock: Managerial BandwidthA key part of Square's strategy has been to add more and more services on its platform. This has not only provided more convenience for customers but has expanded the market opportunity. Note that this strategy has been critical in keeping up the overall growth rate as payments volumes have been trailing off.But there is a risk to this strategy -- that is, it increases the complexity of the organization. The services span diverse categories like invoices, deposits, inventory, appointments, website hosting, marketing, employee management, business loans and so on. All of these are in highly competitive markets.Besides, CEO Jack Dorsey is essentially a part-time CEO, as he also heads up Twitter (NYSE:TWTR). So it will certainly get more challenging for him to manage SQ as the business scales.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post The 3 Scariest Risks With The Square Stock Growth Story appeared first on InvestorPlace.
Undoubtedly, Shopify (NYSE:SHOP) is the gift that keeps on giving. Despite serious reservations on both the fundamental and technical ends, the shares continues to defy gravity, with SHOP stock up 160% since the markets' December nadir.I'm honestly at a loss for words. The enthusiasm surrounding the e-commerce specialist has reached magnitudes not seen since the last cryptocurrency run.I must admit that I take this matter personally. Although I don't have any skin in the game, I recommended in mid May that InvestorPlace readers sell their Shopify stock. Since then, shares have gained slightly over 22%. That's just bonkers.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlthough I acknowledged Shopify's several key attributes -- including the ability for small-business owners to close the gap with their larger counterparts -- I brought in critical context. Certainly, SHOP stock has benefited substantially from the underlying company's meteoric growth rate. However, that growth comes from the low-hanging fruit of poor-quality businesses. * 7 Dark Horse Stocks Winning the Race in 2019 I argued that Shopify doesn't want to disclose its churn rate because it would cloud the sustainability of that growth. Of course, the problem for me is that none of my points mattered. Shopify stock charges forward. To be sure, it's not the first time that I've been wrong about this firebrand.Some strong fundamental news suggests that we'll soon see another leg up in SHOP stock. Having "conquered" the business-to-consumer (B2C) world, SHOP has eyes set on the business-to-business (B2B) model.The shifting priority makes perfect sense. Although B2C attracts headlines, thanks to companies like Amazon (NASDAQ:AMZN), it's a saturated and mature segment. On the other hand, B2B features untapped potential. We're talking about a U.S. market worth $1 trillion, which would be a game changer for a company that has barely cracked $1 billion in annual sales. Flaws Starting to Catch Up with SHOP stockGiven my lack of success calling Shopify stock, I'm not exactly looking forward to putting myself out there again. But despite what must sound like a broken record at this point, I'm still hesitant on the company.First, SHOP is in the retail business. While it has created a platform that allows small businesses to flourish, most of them are probably not successful there. Otherwise, why hide the churn?Further, Shopify isn't really unique nor does it have a moat. The power of SHOP stock lies in the company's brand name. But having a solid brand doesn't protect you from disruption. As a result, Shopify must demonstrate financial viability. The problem of course is that net-income losses are widening.Second, the growth picture for SHOP stock is mathematically showing signs of weakness. For example, in 2015 and 2016, Shopify's year-over-year quarterly revenue growth averaged 93%. Over the last eight quarters, that vaunted growth slowed to 64%. Sure, it's still lofty, but it's a marked decline from prior highs.More critically, that rate has consistently eroded while Shopify stock collected investor sentiment and dollars. Based on this trend, quarterly revenues will soon peak, and eventually flatline.Using sales data from the first quarter of 2015, I extrapolated revenue out to Q4 2020. The forecast isn't pretty, calling for a 27.4% growth rate. Nominally, revenue would be just under $622 million.Click to EnlargeOf course, data extrapolation isn't a perfect means to forecast future revenues. The results come from pure math. Obviously, they don't account for variables such as product launches, management changes, and political factors. * 7 Stocks to Buy As They Hit 52-Week Lows At the same time, SHOP has had ample opportunities to change their revenue-growth curve. But quarter after quarter, year after year, they keep sliding. The extrapolation merely reflects this established, negative trend. B2B Shift a Possible Sign of DesperationI'm sure management understands this. They have far better data, as well as a superior grasp on their business environment. Yet I'd bet that the result is still roughly the same: declining growth leading to peaking sales.Therefore, I don't view the B2B transition as a positive, but rather, a desperation move. Eventually, investors will want to see substantive results from SHOP stock. Currently, Shopify isn't getting those results from their B2C business, and they're unlikely to do so.But transitioning to B2B? I doubt that lightning strikes twice. Along with Amazon, SHOP must go up against powerhouse Alphabet (NASDAQ:GOOGL). Even Salesforce (NYSE:CRM) and Adobe (NASDAQ:ADBE) are getting into the game.This immediately tells me that B2B is whole different animal. Success requires not just a brand but substance to back it up. SHOP would essentially take a knife into a machine-gun fight. And that's why I'm cautious on Shopify stock, even if I was wrong before.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post Still Resilient, Shopify Stock Is Still a Sell appeared first on InvestorPlace.
E-commerce platform Shopify has long been the enemy of traditional retail. But, Shopify COO Harley Finkelstein says brick-and-mortar stores still have a place in retail, and that Shopify incorporates them into their business model.
In the stock market, investors are always looking for the "next big thing". Specifically, they are always looking for that one stock that is relatively small today, but which has the potential to be huge one day. In the process of going from small to huge, that stock rewards investors with multi-bagger returns.Most stocks don't make that cut. After all, there are thousands of stocks out there. Only a handful of them have market caps in excess of $100 billion. That's because the road from small-cap to large-cap is tough and 99% of stocks don't make it.But some stocks do make it, and those growth stocks are the ones that end up rewarding early investors with multi-bagger returns. See Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX) and Microsoft (NASDAQ:MSFT).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for the Coming Recession With this in mind, I've put together a list of 6 relatively small growth stocks that have a realistic opportunity to be the next big thing, or the next Facebook, Amazon, Netflix, Microsoft, so on and so forth. Will all of these stocks make it to $100 billion-plus valuation territory? Probably not. But a portfolio of the following growth stocks should perform very well in the long run. Shopify (SHOP)Source: Shopify via FlickrMarket Cap: $34 billionIndustry: e-CommerceAt the top of this list of growth stocks, we have hyper-growth e-commerce solutions provider Shopify (NYSE:SHOP).In short, retail is doing two things right now. It's going direct, because brands and retailers can now reach consumers directly and without middle-man friction thanks to the internet. It's also becoming decentralized, because the internet has connected everyone at the same time, so anyone can sell anything to anyone. Thus, direct decentralized retail is the future of retail.Shopify is the backbone of this future. The company provides commerce solutions which enable and empower the hundreds of thousands of sellers who comprise this direct decentralized retail model. Yet, gross merchandise value through Shopify stores measured just ~1.5% of global e-retail sales last year. Inevitably, as the direct decentralized retail model gains mainstream traction, Shopify's share of the growing e-retail market will expand.This expansion will drive huge revenue growth, which will come on top of big gross margins and a falling opex rate to drive even bigger profit growth. That profit growth will power SHOP stock materially higher in the long run. The Trade Desk (TTD)Source: Shutterstock Market Cap: $11 billionIndustry: Programmatic AdvertisingRight behind Shopify on the list of growth stocks, we have programmatic advertising leader The Trade Desk (NASDAQ:TTD), a company which can leverage secular automation and AI tailwinds to become a very important player in the global advertising market.In the advertising market, as is true in most markets, things are being automated. This includes the automation of ad spend -- dubbed programmatic advertising -- where companies are increasingly leveraging data and AI to make ad spend smarter, quicker and more efficient than ever before.The Trade Desk is at the forefront of this programmatic ad spend shift. The company operates a market-leading and best-in-class programmatic ad spend platform which helps advertisers more optimally allocate their digital ad dollars. But gross ad spend on The Trade Desk in 2018 measured less than 1% of global digital ad spend. * 5 Tech Stocks That Are Far Too Risky Right Now Thus, there is tremendous runway over the next several years for TTD to keep growing at a robust rate and turn into a very important player in the global advertising market, which is marching towards $1 trillion in annual revenue. Ultimately, that means TTD stock will one day have a market cap far in excess of today's $11 billion market cap. Okta (OKTA)Market Cap: $15 billionIndustry: Cloud SecurityAnother hyper-growth tech stock that has an opportunity to be the next big thing is Okta (NASDAQ:OKTA).Okta is a cloud company which has built a nimble, adaptive and high-quality identity-based security solution that enables any individual in any enterprise to securely access any software service through any device. The big thing here is that Okta's security solution is identity-based, meaning that it turns individuals in an ecosystem from a participant in that ecosystem, to part of the defense barrier for that ecosystem. This pivot basically means that so long as the individual is secure, the whole system is secure, and this opens up a whole new level of flexibility which enterprises desperately need today, but didn't think was possible.The growth angle here is that Okta exited last quarter with just 6,550 customers. There are nearly 6 million employer businesses in the U.S. alone, almost all of whom are migrating to the cloud and need a flexible, adaptive and identity-based security solution. As such, the growth runway for Okta in the U.S. alone is robust -- and even more robust if you take into account the international opportunity.In other words, Okta should be able to grow both revenues and profits by leaps and bounds over the next several years. All that growth will inevitably push Okta's market cap to levels far above $15 billion. Lululemon (LULU)Source: Shutterstock Market Cap: $22 BillionIndustry: Athletic ApparelTaking a detour from the technology sector, we now have Lululemon (NASDAQ:LULU), a hyper-growth athletic apparel company which could one day turn into a smaller version of Nike (NYSE:NKE).Lululemon jumped onto the athletic apparel scene as a high-quality producer of women's yoga apparel. The company developed a great reputation and strong brand equity in the women's yoga apparel market. Then, they leveraged that reputation and brand equity to expand into the broader women's athletic apparel category. The expansion was a huge success, and Lululemon maintained its high-quality reputation and strong brand equity. They subsequently again leveraged those features to jump into the men's market, and that expansion has experienced similar success.Broadly, then, Lululemon has developed a high-quality reputation and built strong brand equity in the athletic apparel space, two things which have enabled it to consistently expand reach and share in the market. This trend will persist for the foreseeable future, and the long term potential for Lululemon is to one day morph into a Nike-type company. * 5 High-Fee ETFs Worth Buying Despite Hefty Expense Ratios Nike has a $100-billion market cap. Lululemon has a market cap down around $20 billion. Thus, if this growth stock continues to expand share and reach, LULU stock is a multi-bagger in the making. Roku (ROKU)Source: Roku Market Cap: $11 BillionIndustry: Over-The-Top (OTT) VideoBack to the tech sector, we have rapidly expanding OTT video platform and service aggregator Roku (NASDAQ:ROKU), a company which -- if it plays its cards right -- could one day be the cable box of an exceptionally valuable global OTT video market.The dynamic in the OTT video market is one defined by rapidly rising supply and demand. Demand is rising because consumers are ditching pricing, programmed linear television packages, for cheaper, more flexible on-demand internet television services. Supply is rising because content providers are chasing that demand and pivoting into the internet TV realm by creating their own streaming services. Thus, supply and demand are both surging higher.Someone has to connect all that supply with all that demand. That's what Roku does through its OTT video service aggregation platform. Importantly, Roku does this aggregation better than anyone else, since: 1) Roku is content-neutral and has no complications with accessing any particular service, 2) Roku is winning the smart TV battle by being in more smart TVs than anyone else and 3) Roku's UI is super intuitive and consumer-friendly.So long as those three things remain true, Roku projects to be the cable box of the OTT video market and one of the biggest growth stocks of the stock market. One day, this market will be huge in terms of both subscription dollars and advertising dollars. As the cable box of the market, Roku will win its fair share of both sub and ad dollars, implying that ROKU stock will head significantly higher in the long run. Square (SQ)Source: Via SquareMarket Cap: $30 BillionIndustry: PaymentsLast, but far from least, on this list of potential next big thing growth stocks is Square (NYSE:SQ), the payments processor that has a unique opportunity to become a very important and disruptive player across the entire payments and financial services markets.Square started out as a payments processor to help facilitate non-cash payments in the brick-and-mortar channel so that small to medium sized retailers could keep up with the consumer shift away from cash. The company has since become much more. Today, in addition to helping facilitate non-cash payments in the brick-and-mortar channel, Square has extended its reach into the e-commerce world, developed a consumer cash transfer app, built out a payroll management software service, launched a lending business and so much more.In other words, Square has innovated its way into becoming an important player across the entire payments and financial services ecosystem. This innovation has laid the groundwork for tremendous growth over the next several years, as Square's many nascent businesses scale share across multiple different verticals. Most of these verticals are very high margin, too, so most of that growth will translate into even bigger profit growth. * 7 Dark Horse Stocks Winning the Race in 2019 Net net, Square is a payments company that projects as a huge revenue and profit grower over the next several years thanks to the company's ability to innovate across multiple different secular growth markets. Ultimately, all that profit growth will push SQ stock way higher in a multi-year window.As of this writing, Luke Lango was long FB, AMZN, NFLX, SHOP, TTD, OKTA, NKE, ROKU and SQ. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post 6 Growth Stocks That Could Be the Next Big Thing appeared first on InvestorPlace.
The past year has been a great one for Canadian ecommerce firm Shopify (NYSE:SHOP). Shopify stock has been on a tear since the start of 2019 with the share price more than doubling over the past six months.Source: Shopify via FlickrImpressive profit growth combined with a solid business model has kept investors bullish on Shopify stock despite numerous warnings about the security's bubble-like behavior. At $306 per share, SHOP has bucked bullish calls for months, but will gravity eventually catch up with the e-commerce winner?There's certainly a lot to like about Shopify. The firm helps businesses make their products available online through a platform that they can easily integrate with a variety of ecommerce websites.InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Closer Look at ShopifyShopify is benefitting from the fact that merchants are turning toward a more decentralized selling process, in which they can reach buyers directly through a variety of channels. That has helped SHOP grow its total merchants exponentially over the past few years while keeping margins high. It's been a pretty effective recipe for success that traders have been gravitating toward.Shopify's business looks likely to thrive in the future as ecommerce continues to dominate the retail landscape and small businesses look for ways to put themselves on a level playing field with their larger competitors. SHOP's suite of services that help merchants with everything from shipping to payments should help the firm grow its client base and tie existing clients into its platform further. The bottom line on the bull case for SHOP stock is that the security represents a solid business with a bright long-term future. Shopify Faces ChallengesWhile no one can argue against the validity of Shopify's business model they can argue that SHOP stock has simply gotten too big for its britches. Shopify stock trades at 534 times its forecasted earnings. To put that into perspective, the average for the IT sector is just 19. Sure, Shopify has a compelling growth story, but it's not that compelling. Not only does that make SHOP and expensive play, but it adds a layer of risk as well. Such a high valuation suggests that investors are expecting big things from the ecommerce platform, and it would be irresponsible to assume that the firm will always deliver. Shopify, like all companies, will stumble at some point and the consequences will likely be disastrous simply because of the sky-high expectations.There are plenty of potential pitfalls on the horizon for SHOP stock as well. For one thing, much of Shopify's success is dependent on the firm's relationships with larger firms like Amazon (NASDAQ:AMZN) and Facebook (NASDAQ:FB) and any change in those relationships could weigh on Shopify's future growth.That should be at the top of investors minds right now as regulators clamp down on data usage, targeted advertising and social media advertisements.Plus, the quality of Shopify's merchants has also come into question. Some Shopify merchants "dropship" their products- meaning they sell foreign products at higher prices and ship the inventory direct from the foreign manufacturer. While there's nothing illegal about dropshipping, but it does cause friction when products don't arrive on time or are of poor quality.Finally, there's also the concern that Shopify's client base, primarily small business owners, will be hardest hit by an economic slowdown. As Shopify makes the majority of its money on individual transactions, a recession could significantly alter the firm's growth projections. The Bottom Line on Shopify StockThe bottom line for SHOP stock is that it's simply too expensive to be a buy. I like Shopify's business model and the firm's future prospects, but there's just too much potential for a steep pullback to take a position right now.If you already own shares of Shopify stock, this could be a profit-taking opportunity but I wouldn't give up on the long-term bull case. The next 6 months could bring on a SHOP stock correction that will bring the share price back down to earth and create a much better entry point for long-term investors.Shopify stock is simply over-hyped at present, but the company behind the stock is worth considering should the share price become more reasonable. As of this writing, Laura Hoy was long AMZN and FB More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Dark Horse Stocks Winning the Race in 2019 * 6 Chinese Stocks to Sell That Are Suffering From a Digital Ad Slowdown * 4 Technology Stocks Blasting Higher Compare Brokers The post Sky-High Valuation Is a Real Problem for Shopify Stock appeared first on InvestorPlace.
Eventually, the cream rises to the top. And, when you look at performance, that's certainly been true with the A-rated stocks I'm finding with my Portfolio Grader.Source: Shutterstock What makes an A-rated stock? Well, it's simple. Ultimately we're talking about 1) solid fundamentals, and 2) strong buying pressure. In other words, are other investors willing to buy this stock -- lots of them … especially the "smart money" (i.e., big Wall Street institutions). As for the fundamentals, we also want to see positive trends in sales, earnings, cash flow and the like.The rewards for investing this way are clear. Since mid-February, the S&P 500 was negative as recently as Monday, while stocks like NAPCO Security Technologies (NASDAQ:NSSC) are up +56% for us at Accelerated Profits:InvestorPlace - Stock Market News, Stock Advice & Trading TipsA month after its stellar earnings report, the stock has hit even more 52-week highs, on strong volume. In fact, that's been the pattern all year from NSSC. There's been great volume on up days … far more than on down days.The volume spikes were especially large on the February earnings report (66% better than forecast) and the May earnings report (41% better than forecast). And, of course, more buyers than sellers -- and positive earnings surprises -- is exactly what we want to see.I mention all this because it proves that we CAN find great investments -- even in this tricky market. You just need a system that helps you spot the signs … just before the price skyrockets.Let's look back at a couple other examples of stocks that signaled they were about to liftoff, to see what we can learn.Shire Country: U.K./Ireland Industry: Pharmaceuticals Buy Signal: March 26, 2014I said: "The company is best-known for its strong position in the ADHD market, with drugs like Vyvanse, Intuniv and Adderall XR. In the fourth quarter, the company sales rose 12% to $1.33 billion and its operating earnings rose 36% to $2.26 per share compared with the same quarter a year ago. The company also provided positive sales and earnings guidance, and I want to use the recent dip that we've seen in the biotech sector as a chance to add Shire to the Buy List."Outcome: SHPG ⇧ 68% by JulyShopify (NYSE:SHOP) Country: Canada Industry: E-Commerce - Retail Buy Signal: January 2, 2019I said: "Shopify has 600,000 active stores, with merchants in 175 countries. The company's goal is to help small businesses reach more consumers, and its stores range from makers of handbags to furniture designers. Shopify is also benefitting from the legalization of cannabis in Canada, as there's been a surge in online shopping for cannabis recently. Shopify has posted an average 211.7% earnings surprise in the past four quarters, so it's likely to report strong earnings results."Outcome: SHOP ⇧ 47% by MarchWorld Wrestling Entertainment, Inc. (NYSE:WWE) Country: United States Industry: Media Buy Signal: Dec. 19, 2017I said: "WWE boasts more than 650 million viewers across North America, Europe, Africa, the Middle East, the Asia Pacific and Latin America. In the third quarter, the company's sales increased 13.5% year-over-year to $186.4 million, while operating earnings surged 100% year-over-year to $21.8 million, or $0.28 per share. That topped analysts' earnings estimates by 20%. For the fourth quarter, analysts are expecting 6% annual sales growth and 90% annual earnings growth. And earnings per share estimates have been revised higher in the past two months."Outcome: WWE ⇧ 150% by May Where I See the Best Opportunity NowAs I said, I believe in "following the money" -- and right now, it's flooding into elite U.S. stocks.These are the companies that stand to benefit from huge foreign investment in U.S. equities, the incredible shrinking stock market … and, most importantly, a period of "hypergrowth" -- all of which will cause their share prices to soar.All of the doom and gloom on TV has nothing to do with these companies. It has everything to do with ratings. So, we simply have to look elsewhere if we want to get serious about building wealth.That's why I'm laser-focused on fundamentals and buying pressure. It's how I've always been able to find growth with less risk. And it's how I'm finding great buys today.My list of 5 Elite U.S. Stocks Set to Explode is ready and waiting. Click here to learn more.Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post Best Stocks to Buy Now? Here's Where to Look appeared first on InvestorPlace.
Shopify (NYSE:SHOP) had a good few days following its release of the company's inaugural first global State of Commerce report on June 5. SHOP stock gained 9.1% in the wake of the report, versus a 2.2% gain in the Nasdaq Composite index. Source: Shopify via FlickrInvestorPlace - Stock Market News, Stock Advice & Trading TipsThe insights seem to support a continued bullish stance on SHOP stock, in particular, these five findings. Shopify Merchants Sold a Lot of StuffShopify's report found that the company's merchants (~820,000) sold to 218 million buyers in 2018, 34% higher than a year earlier. That's 25 times the population of New York City. Interestingly, U.S. consumers tend to buy more items per online purchase than other countries, averaging six items per purchase, double those of other countries, such as Canada, Australia, and Japan. Speaking of JapanThe Japanese are found to be prodigious shoppers, both in terms of time spent online when buying -- an average of 27.6 minutes. The same goes for the average amount spent per transaction -- $141.72, or 74% more than the average U.S. buyer per transaction. * The 10 Best Stocks for 2019 -- So Far This penchant for shopping explains why Alibaba (NYSE:BABA) opened a second data center in Japan in January. It's catering to the "new retail" industry who require the best in artificial intelligence, machine learning, and analytics in the cloud to compete online and in the store. With the Japanese leading the charge in omnichannel retail, the Shopify platform is a natural for merchants of all sizes looking to remain competitive in one of the world's most robust retail arenas. Brand Loyalty is Leading to More SpendingOne of the most loyal groups of customers I know of are Lululemon Athletica (NASDAQ:LULU) shoppers. They're relentless in their pursuit of new items produced by the athletic wear brand. It turns out that over 62 million buyers from Shopify merchants purchased something from the same store at least twice, representing over 14% of all buyers overall. In fact, on average, buyers purchased from the same store 3.8 times in 2018.The Japanese are said to be the biggest repeat buyers among 12 countries including the U.S. That said, 73% of North American respondents from Shopify's online global survey of 3,832 Shopify merchants along with a survey of 2,653 consumers revealed that once someone finds a brand they like, they stick with it. By providing Shopify merchants with the best apps to run their businesses and collecting as much data as possible about the end-user customer, Shopify is able to cater its offerings to meet those needs. 5 P.M. is Buy TimeInterestingly, while the peak browsing time for Americans and Canadians is midnight and 8 p.m. respectively, they both tend to make actual purchases at 5 p.m. just as the workday is winding down. * The 10 Best Stocks for 2019 -- So Far Not coincidentally, 36% of North American buyers often make purchases to cheer themselves up, usually after a bad day at work.For Shopify, this means having its systems in prime form and ready for business just as most of us are ready to call it a day. Online Buyers Spend MoreAlthough Shopify is best known for helping stores sell online, it's pushing hard into the brick-and-mortar side of retail because it knows that omnichannel retail is the future.For North America, Shopify's report found that although a majority of buyers prefer researching a product online than in the store, they overwhelmingly prefer making the purchase in-store rather than online. * 10 Stocks to Buy That Could Be Takeover Targets That said, in the Shopify merchant universe, the average online buyer spends $75 per order compared to $62 in the store. In the future, Shopify's success will come if it can continue to provide merchants with the ability to sell anywhere, anytime. Bottom Line on SHOP StockI believe that one of Shopify's biggest threats will come from Square (NYSE:SQ) which is slowly making inroads into the online world. However, if Shopify continues to pay attention to what the data is telling it, I think owners of SHOP stock ought to be confident that its stock will be higher five years from now. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% * 7 Stocks to Buy That Don't Care About Tariffs * 5 Healthcare Stocks to Pick Up From the Wreckage Compare Brokers The post Shopify Stock Benefits As Platform Learns More About End-User Customer appeared first on InvestorPlace.
Zendesk stock hit an all-time high on Friday. Goldman Sachs initiated coverage on HubSpot, Zendesk, and Tableau stock with buy ratings but took a neutral position on shares of Shopify.
Shares of digital merchant services company Shopify have mostly climbed all year. “Shopify is steadily increasing the use cases of its platform, which we think will improve retention and revenue per customer,” Merwin wrote. Merwin writes that the company is well positioned to boost its take rate, or the amount of GMV that turns into revenue—perhaps more than three times.
"Overall, we see the competitive narrative as over-hyped and see ample market opportunities for both Magento and Shopify," analyst Josh Beck wrote after attending the Magento Imagine conference last month in Las Vegas. Beck said more than 3,500 attendees took part in the conference and he spoke with developers, payments and shipping providers. The bank sees a path where Magento can gain about 9% market share, while Shopify gains about 2%, with limited overlap.
These 5 stocks have delivered jaw-dropping gains so far in 2019. Despite a volatile market, these are the tech stocks that have still managed to seriously outperform. We are talking returns of 70% + in just over five months. That’s as the tech-heavy Nasdaq index enters correction territory amid ongoing regulatory concerns for the FAANG stocks. But the question is, do these 5 tech stocks still make compelling investing opportunities right now? Here’s what the Street has to say… Trade Desk- 100.16%At the time of writing, shares in Trade Desk (TTD – Research Report) have doubled year-to-date. That’s with a 15% burst in the last five days. The online advertising marketplace received a boost on Tuesday following comments from Federal Reserve chairman Jerome Powell that he would consider lowering interest rates to ‘sustain the expansion' of the US economy. What’s more, Pivotal Research’s Mark Levine upped his price target on TTD from $255 to $265 on June 5. This new Street-high price target indicates further upside potential of 14%. Levine sees continued share gains for TTD relative to other DSPs (demand-side platforms), adding that regulatory scrutiny of Google is a net positive for Trade Desk. However other analysts are more cautious. Oppenheimer’s Brian Schwartz’s $210 price target indicates 10% downside from the current share price of. Nonetheless, the analyst, one of the Top 10 ranked by TipRanks, reiterated his buy rating on TTD post-strong Q1 results and a better 2019 outlook.Schwartz stated: “Bottom Line: We believe that the combination of higher growth and margins versus other leading software vendors and the perception of being more aggressive on new and modern platform technologies than the competition will allow TTD to sustain a premium valuation versus the software industry.”View TTD Price Target & Analyst Ratings Detail Shopify- 111% E-commerce platform Shopify (SHOP – Research Report) has seen shares explode by 111% year-to-date. The company reported stellar results for Q1, and robust guidance for the year prompting the ongoing rally. Even in the last month shares have continued to climb 10%. But now analysts are calling for investors to take a breather. Indeed, Morgan Stanley’s Brian Essex has just downgraded SHOP from Hold to Sell. That’s with a price target of just $209- which translates to 29% downside potential from current levels. The analyst is concerned that much of Shopify’s revenue is transaction-based rather than subscription-based. Unlike transaction-based revenue, subscription-based revenue is recurring and therefore much more reliable. According to the latest earnings results, subscriptions now make up 44% of SHOP revenue down from 47% in the previous quarter. “The durability and scale of subscription models is one reason SaaS vendors are able to command high multiples,” says Essex. “We do not think Shopify has the potential to reach the terminal operating margin potential of its enterprise SaaS peers.”View SHOP Price Target & Analyst Ratings Detail Snap- 136%Out of all the stocks covered here, camera company Snap Inc (SNAP – Research Report) has recorded the best year-to-date performance. SNAP investors have been rewarded for their faith with remarkable returns of 136%. For Q1, the company revealed stronger than expected daily active user growth (~4 million adds), expanding average revenue per user, and even reduced operating losses. However the stock also shows the most cautious outlook from the Street, with the clear majority of analysts rating SNAP a Hold. The message from the Street appears to be that the current valuation has now largely factored in the positives, while competition remains intense. JMP Securities analyst Ronald Josey explains why he is staying on the sidelines here: "While we believe there are several catalysts for Snap in 2019, we point to the now-launched rebuild of its Android app, greater engagement with Snap Games & Discover, and an improved AR experience, as Snap now reaches 90% of 13-24 year olds domestically, we maintain our Market Perform rating, as we focus on engagement rates (we project DAUs to decline sequentially in 2Q) and we note the potential risks around Snap’s sales force reorganization."View SNAP Price Target & Analyst Ratings Detail Plug Power- 105% Trading at under $5, Plug Power (PLUG – Research Report) makes an interesting investing proposition. The company develops hydrogen fuel cells that offer increased productivity and lower operating costs compared to traditional batteries. Despite doubling in share price over the last few months, analysts still see over 40% upside potential ahead. And that’s with a ‘Strong Buy’ consensus based on all ratings received by PLUG in the last three months. Christopher Van Horn of B Riley FBR is upbeat about the company’s expansion from mobile fuel cells to material handling and on-road applications like electrical vehicles. “Plug Power continues to see strengthening business trends in core material handling markets, as well as lateral opportunities in on-road applications” wrote the analyst.“More importantly, we believe PLUG should achieve—and sustain—operating profitability starting in 2H19, a long-term goal that is finally in sight. We reiterate our Buy rating and $3.50 PT: We believe the company is better positioned in its core material handling business than ever before.”View PLUG Price Target & Analyst Ratings Detail Lattice Semiconductor- 99%Also in the ‘Strong Buy’ camp comes Lattice Semiconductor (LSCC – Research Report). The company has just held a bullish analyst day that emphasized share gains of its FPGA solutions in key communications, computing, industrial, and automotive segments. FPGA stands for field-programmable gate array, which essentially means that the user programs the device rather than the designer- offering very high levels of flexibility. Following the event, five-star Cowen & Co analyst Matt Ramsay reiterated his buy rating and $16 price target (16% upside potential). The analyst stated "Strategically, there were few surprises at the analyst day, as we believe new CEO Jim Anderson has his team laser focused on Lattice's differentiation in the low-power/small footprint FPGA market… New target model of double digit revenue growth and 62%+ GM appears achievable, with cost optimization driving a clear path to $1 EPS power.”Ultimately, Ramsay concludes: “We continue to believe the combination of Lattice's differentiated FD-SOI technology, and its competitive positioning as the only FPGA provider focused on low-power edge processing should allow it to benefit from several powerful drivers of secular semiconductor content." View LSCC Price Target & Analyst Ratings Detail Discover more 'Strong Buy' stock ideas from top analysts here
We saw strong follow through in the stock market after a big "Turnaround Tuesday." Can the market keep up the action or will we start to run into some resistance? I wouldn't be surprised if we chop on Thursday, particularly with the jobs report coming up on Friday morning. Let's look at some top stock trades. Top Stock Trades for Tomorrow 1: American EagleOn the one hand, American Eagle Outfitters (NYSE:AEO) broke out of a nasty downtrend (blue line), which took shares from $24 to $17 inside of a month, dealing AEO a ~30% blow.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat said, AEO has given up almost all of its post-earnings gains on Wednesday. Ugh. At least it's better than GameStop (NYSE:GME), down almost 40%. * The 10 Biggest Announcements From Apple WWDC 2019 If this one can firm up over $18 to $18.50, aggressive bulls can take a shot on the long side. Otherwise, this one may be a no-touch until it can prove itself in one direction or another. Over the 20-day moving average puts $20 on the table. Below $18 puts the $17 lows on watch. Top Stock Trades for Tomorrow 2: Shopify Click to EnlargeInvestors who like playing chicken with an oncoming train must love trading Shopify (NASDAQ:SHOP) from the short side. As much as I wanted to talk about Roku (NASDAQ:ROKU) as it bursts over $100, this one deserves a look too.Keep it simple: Shopify continues to holds its 20-day moving average and uptrend support. It burst over $280 resistance and short of a market-wide correction, has its eyes set on $300+. Below $280 puts the 20-day/uptrend support on watch. Top Stock Trades for Tomorrow 3: Coca-Cola Click to EnlargeWhat a breakout we have in Coca-Cola (NYSE:KO) on Wednesday! Shares burst over $50 after a series of higher lows over the last three months.Keep this one simple too. Stay long over $50 and consider buying on a retest. Top Stock Trades for Tomorrow 4: Micron Click to EnlargeNegative news has Micron (NASDAQ:MU) slipping about 4% on Wednesday. Shares opened near the 20-day and were instantly batted down. Sometimes the news and the technicals line up a little too good.Shares are still over short-term downtrend resistance (purple line), but below $34. The stock spent the last week or two consolidating between $32.50 and $34. Is it a compelling investment right now? Maybe. But below the former level ($32.50) and I'd look out in MU. It could bring up lower prices in a hurry. Top Stock Trades for Tomorrow 5: Ambarella Click to EnlargeIt sure was nice to see Ambarella (NYSE:AMBA) jump out of that bullish consolidation area between $37 and $39. But how discouraging is it to see it give up all of its post-earnings gains on Wednesday?We can't trust a move like this, especially given the type of market we're in right now. If AMBA can reclaim $40, perhaps it can give its 20-day moving average another run. Above that mark puts Wednesday's highs back on the table. * The 10 Best Stocks for 2019 -- So Far Below $39, and $37 short-term range support is back on the table. If that doesn't hold, AMBA stock could be heading down a slippery slope.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Retailers Including Disney Agree to Ditch On-Call Scheduling * The 10 Best Stocks for 2019 -- So Far * 7 Small-Cap ETFs to Buy Now Compare Brokers The post 5 Top Stock Trades for Thursday: SHOP, MU, KO, AEO appeared first on InvestorPlace.