|Bid||275.86 x 800|
|Ask||276.50 x 900|
|Day's Range||272.52 - 278.88|
|52 Week Range||117.64 - 280.95|
|Beta (3Y Monthly)||1.78|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 30, 2018 - May 4, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||251.81|
Jim Cramer reveals how some CEOs are willing to take the tariff pain because they're fed up with China's trade practices.
The Zacks Analyst Blog Highlights: Home Depot, Phillip Morris, United Parcel Service, V.F. and Shopify
E-commerce platform Shopify has quietly made an acquisition to continue itsexpansion of the services and products that merchants can sell and purchasethrough its platform
There are two critical elements to identifying long-term winners in the stock market. First, find a secular growth industry, supported by secular growth trends with a massive addressable market. Second, find the top company or companies in that industry. Do those two things, and you've found yourself a long term-winning stock which you can buy and hold for the long haul.What exactly makes a company in a secular growth industry a "top" company? There are a lot of factors. But, arguably the most important is innovation. Simply, a company that innovates consistently in a secular growth industry is often one that is expanding its share in that industry. Companies that expand share in secular growth industries tend to consistently produce robust revenue and profit growth.And, ultimately, robust revenue and profit growth are what make stocks go higher. Thus, if you're looking for a long-term winning stock, look for an innovative company expanding share in a secular growth industry.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks to Buy for This Decade's Massive Megatrend Which stocks fit that description? Let's take a closer at 6 innovative stocks with big long-term growth potential. Shopify (SHOP)Source: Shopify via FlickrThe Industry: Direct-decentralized retailThe entire retail world is pivoting towards a direct-decentralized model. Broadly, the direct part is the result of the internet connecting brands/retailers directly to their customers, thereby removing the need for a middleman. The decentralized part, meanwhile, is the result of the internet democratizing the retail process so that anyone can sell anything to anyone through the internet.This model yields optimal outcomes for sellers (millions of new sellers can now compete with traditional sellers) and buyers (there's more supply, which inherently means lower prices and higher convenience). Thus, direct decentralized retail will continue to grow in popularity over the next several years.The Innovator: Shopify (NYSE:SHOP)The pioneer and leader in this market is Shopify. The company provides commerce solutions which enable and empower the millions of new sellers which comprise this direct decentralized retail model. Over the past several years, Shopify has continued to iterate, improve, and expand its suite of offerings.The net result is that the company has dramatically grown its market share in the commerce world, and continues to do so today. So long as this remains true, SHOP stock will remain on a long term winning trajectory. The Trade Desk (TTD)Source: Shutterstock Industry: Programmatic advertisingThe advertising world is increasingly shifting towards an automated ad transaction model. Broadly, this means that ad spend is increasingly being done using data-driven algorithms -- not humans and guess-and-check work -- so the ad-spend process is becoming smarter, more dynamic and more efficient than ever before. This process is called programmatic advertising. Given its multi-faceted benefits, it is the future of advertising.The Innovator: The Trade Desk (NASDAQ:TTD)The most exciting company in this space is The Trade Desk, a programmatic advertising company which has leveraged a differentiated product offering, aggressive product innovation, and platform neutrality to turn into the growth darling in the programmatic advertising space. Over the past several years, The Trade Desk has significantly and rapidly expanded its market share in the programmatic advertising market. * The 7 Best Stocks to Buy From the IPO ETF This trend will persist. As it does, The Trade Desk will continue to report great numbers, and those numbers will propel TTD stock meaningfully higher. Square (SQ)Source: Chris Harrison via Flickr (Modified)Industry: Digital paymentsAcross the global commerce space, there has been and continues to be a huge secular pivot from cash payments to non-cash payments, as consumers have increasingly adopted digital and card payment methods which are significantly more convenient. But, cash remains a big part of the global economy. Thus, there's still a ton of room for non-card payment methods to gain share over the next several years. As they do, companies which facilitate these types of payments will benefit from robust growth.The Innovator: Square (NYSE:SQ)The most innovative company in this space is Square. The payments processor has made a killing facilitating physical, non-cash payments for small to medium sized retailers. But, Square didn't stop there. Instead, they've subsequently expanded their physical offerings to be more attractive to bigger sellers, jumped into the digital payments space, created a suite of Services business, tested the waters in the banking world, and even built a food delivery platform.All in all, then, Square is innovating everywhere, and this rapid innovation has produced rapid market share expansion. So long as this continues, SQ stock will trend higher in the long run. Axon (AAXN)Source: Axon Industry: Law-enforcement technologyThe technology world is moving fast. But, the law-enforcement world has largely been left behind the technology curve. Until recently. Over the past several years, antiquated law enforcement agencies have undergone much-needed technology makeovers, which includes adopting things like smart cameras, smart weapons, cloud solutions and data-driven analytics services.These technology upgrades are happening with greater frequency and pace across the world. Soon enough, every law enforcement agency will be equipped with the latest and greatest tech.The Innovator: Axon (NASDAQ:AAXN)The pioneer, largest player and most innovative company in this space is Axon. Axon started out just selling Tasers to law enforcement agencies. Then, they pivoted into body cameras and dash cameras. Realizing the potential in the law enforcement tech world extended beyond hardware, they then pivoted into servicing the law enforcement world with cloud-hosted solutions to replace archaic on-premise solutions. * 3 Small Caps That Could Be the Next Amazon Stock Net net, the company has dramatically expanded its suite of law enforcement tech over the past several years, and in so doing, has dramatically gained law enforcement wallet share. This trend is still in its early stages, as Axon has dominated the domestic market but is only scratching the surface of its international potential. As the international growth narrative plays out, Axon's profits will run higher, and so will AAXN stock. Chegg (CHGG)Source: Rob Wall via Flickr (Modified)Industry: Digital educationThe internet has changed and continues to change many industries. One of those industries is the education world. In the education world, students are increasingly turning towards the internet for academic assistance. This includes on-demand tutoring services, online citation makers, online textbook answers and much, much more. As students turn in greater and greater frequency to the internet for academic assistance, there remains tremendous growth potential for a connected learning platform to capture and monetize all this demand.The Innovator: Chegg (NASDAQ:CHGG)The unprecedented leader and pioneer in the digital education space is Chegg. Broadly speaking, there wasn't an at-scale, digital connected learning platform in the market until Chegg came around. And, Chegg didn't start with connected learning. They started with textbook rentals and have increasingly pivoted into the digital education market over the past several years.Chegg continues to expand its connected learning platform today, so that students of all disciplines have a reason to turn towards the platform. Assuming this value and use-case expansion continues, then Chegg is on track to tap into all 36 million high school and college students in America in the future. Right now, they only have about 10% of that, so the long-term growth runway here is quite promising. Canopy Growth (CGC)Source: Shutterstock Industry: CannabisCannabis is now fully legal throughout Canada. This is just beginning. Given the overwhelming volume of research which suggests that cannabis isn't all that bad for you and the equally overwhelming volume of cannabis demand, global cannabis legalization isn't a matter of if. It's a matter of when.When it does happen, the global cannabis industry will be quite big. The trends are crystal clear. Over the past two decades, cannabis consumption among U.S. high school students has steadily increased, while tobacco and alcohol consumption have steadily decreased. Today, cannabis consumption rates are nearly equal to alcohol consumption rates among high school seniors.As such, once fully legal across the globe, the cannabis industry could measure as large as the alcoholic beverage industry, which is far in excess of $500 billion.The Innovator: Canopy Growth (NYSE:CGC)The leader and aggressive innovator in the cannabis space is Canopy Growth. Canopy is the biggest player in the legal Canadian cannabis market, with the largest growing footprint and the biggest volume and sales base by a wide margin. Further, Canopy is equipped with $4 billion on the balance sheet as the result of a big investment from alcoholic beverage giant Constellation Brands (NYSE:STZ).Canopy has been very aggressive with that $4 billion, including prepping a big launch into the U.S. cannabis market with the proposed acquisition of U.S. cannabis company Acreage. These aggressive investments will pay off in the long run. Canopy is giving itself robust and high quality exposure to every niche of the global cannabis market. As all those niches scale over the next several years, Canopy will scale, too. * 7 Marijuana Stocks to Play the CBD Trend Big picture, the company is positioned to one day be the leader in a $500 billion industry. If that happens, CGC stock will one day be worth a lot more than $16 billion.As of this writing, Luke Lango was long SHOP, TTD, SQ, AAXN, CHGG, and CGC. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post 6 Innovative Stocks With Big Long-Term Growth Potential appeared first on InvestorPlace.
Earlier this month, I wrote a bullish article on Uber (NYSE:UBER) stock. My thesis was simple. The Uber IPO was a dud because of short-term timing issues.Source: Shutterstock Those timing issues won't hang around forever. Once they pass - and they will pass quickly - investors will shift their focus to the long-term growth outlook of Uber. That long-term growth outlook is quite robust. As a result, once the Street begins focusing on the company's fundamentals, Uber stock will become a winner. * 7 Safe Stocks to Buy for Anxious Investors That has already happened. Uber stock dropped 20% below the Uber IPO price just a few days after the IPO. But, over the past ten days, Uber stock has rallied back to levels not far below the Uber IPO price.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUber stock has rallied as timing issues faded and investors became more interested in growth stocks again.For several reasons, the strength of Uber stock will continue. Those reasons are outlined below. The Growth Trade Is BackFrom a macro perspective, growth stocks are back in favor, and that will help Uber stock price head higher.The Uber IPO occurred at a bad time. Investors were shying away from growth stocks amid rising international trade tensions. Their concern was that new tariffs, if in place for a long time, would simultaneously slow U.S. economic growth and raise prices and inflation. Higher prices would force the Fed to come off the sidelines and hike rates. In a slowing economy with rising rates, growth stocks don't do well.But the market has quickly moved past those issues. Concerns about trade were overstated, as many of the tariffs imposed by President Trump have grace periods and delays, implying that both sides still want to get a deal done soon. Meanwhile, the U.S. economy really isn't slowing by much, as first-quarter sales and earnings have been way stronger than expected. Additionally, inflation remains muted, so the Fed will stay on the sidelines.In other words, we are still in the midst of a strong economy with muted inflation. That environment is a dream combination for growth stocks. As a result, growth stocks will remain in favor, and that will help Uber stock price. Employees Won't Sell Uber StockAn important determinant of the performance of stocks that have recently gone public is insider sentiment. Specifically, skeptics often think that insiders use IPOs to unload shares to public investors, so that the insiders can sell their shares at favorable prices. Insider selling, in turn, pressures stocks, ultimately causing them to head lower.That may have happened to Uber stock during its first few days of trading. It's tough to tell. But the important thing is that the phenomenon probably won't last much longer.According to a survey by Blind, nearly 80% of Uber's employees believe that Uber stock is undervalued, while only 8% think it is overvalued. Employees own a great deal of Uber stock. There are lock-up periods and other restrictions which will prevent them from selling some of their shares anytime soon. But the fact that only 8% of employees think Uber stock is overvalued implies that, at these levels, there won't be much insider selling pressure.Without that insider selling pressure, buyers should remain in control of Uber stock price. Profitability Concerns Are OverstatedThe biggest knock against Uber stock is the amount of red on the company's income statement. The company generates billions of dollars in net losses every year, and its cash burn rate hasn't really improved all that much. Plus, it's facing big-time competition in the ride-sharing market, and that competition ultimately caps how high Uber's margins can go.But these profitability concerns are overstated.Here's a long list of stocks from the past few years which were all unprofitable at the time of their IPOs: Shopify (NYSE:SHOP), Square (NYSE:SQ), Roku (NASDAQ:ROKU), MongoDB (NASDAQ:MDB), and Okta (NASDAQ:OKTA). All of those stocks are up by tremendous amounts since their IPOs, mostly because their margins have risen as their businesses have grown, and, as a result, they are either already producing or are on the verge of producing sizable profits.Uber will be no different. Its gross margins are positive and climbing. Its operating-spending rate is falling and will continue to drop as its business grows. Thus, as Uber's gross margin rate rises and its operating-spending rate falls, it's only a matter of time before Uber becomes profitable. Uber's Long-Term Growth Opportunity Is TremendousThe biggest reason to buy and hold Uber stock for the long run is that this company is just scratching the surface of its global-growth potential.Uber is the global ride-sharing king. But ride-sharing currently accounts for only a few percentage points of global vehicle-based transportation. Current trends imply that ride-sharing should eventually become at least 20%- 30% of the global vehicle-based transportation market. A few of those current trends are as follows: * The coordinated economy. Read more about it here. * There are simply too many cars on the road. Population growth and urbanization will only aggravate traffic headaches. Lowering the volume of cars on the road through ride-sharing services simply makes sense, and will make transportation more convenient. * Ride-sharing can expand into new vertical markets, including transportation of goods and food. * The goods and food transportation verticals are primed for tremendous growth, thanks to the increased popularity of ordering food and clothes from home.All in all, the ride-sharing economy should grow by leaps and bounds over the next several years. Uber is the leader of multiple vertical markets within the global ride-sharing economy. As long as the company maintains this leadership position (and it should because of its unparalleled liquidity network effects), then Uber should continue to grow rapidly over the longer term, boosting Uber stock price in the process. The Bottom Line on Uber StockThe Uber IPO was a dud because of macro economic worries. Those concerns have faded. Now Uber stock is in the early stages of a long-term uptrend. If you bought the dip of Uber stock, hold onto it. If you didn't buy the dip previously, look to purchase the shares on any further weakness. This stock will be a long-term winner.As of this writing, Luke Lango was long UBER, SHOP, SQ, ROKU, MDB, and OKTA. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post 4 Reasons to Buy Uber Stock on Weakness appeared first on InvestorPlace.
My skepticism toward Shopify (NYSE:SHOP) looks absolutely foolish at this point. Shopify stock has been one of the most torrid stocks of 2019 and only continues to climb. SHOP stock has pulled back in recent sessions, but still has gained 93% so far this year.Source: Shopify via FlickrLike a lot of investors, I like the Shopify business; in fact, I recommended the stock several times last year. Of late, however, I've pointed to valuation, arguing most recently in April that SHOP stock, at $206, was due for a big fall.That call was wrong. Shopify stock has risen another 30% in the seven weeks since then. But I haven't been alone in seeing the stock as overvalued. On this site, Dana Blankenhorn called SHOP a bubble in March, and repeated that sentiment last week. Luke Lango called it one of the market's best growth stocks - and still argued the price was too high.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWall Street has expressed similar caution. Three different analysts downgraded Shopify stock last week. Even Barron's has noted that it and some of those analysts had heard from disgruntled readers after negative coverage of the stock.Seemingly everyone sees SHOP as a stock that has run too far, too fast. But as traders know, that alone might suggest more upside is ahead. It's not until the entire market sees a stock's upside as inevitable that the stock usually turns.Yet at the same time SHOP stock trades at seemingly unsustainable valuations. If sentiment suggests more upside, what about the fundamentals? * 7 Stocks to Buy for Over 20% Upside Potential SHOP Stock and the FutureOne way to consider the current valuation of SHOP stock is to understand what type of future the market is pricing in. Investors should discount Shopify stock by at least 10% a year, to account for its risk and volatility.At the moment, SHOP has an enterprise value (market cap less its ~$2 billion in cash) of $27.6 billion. That means investors believe the company should be worth about $44 billion Five years from now - and $71 billion in a decade.Looking solely at revenue, that seems at least potentially doable. Revenue is expected to be about $2 billion next year. The current growth profile suggests a path to a double, at least, over the next four years. Is, say 9x 2024 revenue of $4.8 billion unreasonable? Or 7x 2029 sales of $10 billion?Those revenue levels might seem unreasonable, but the $10 billion target only suggests an average growth rate of 20% from 2020 on. With opportunities for international growth, and potentially new offerings (think CRM software or marketing capabilities) that growth rate is not impossible.Nor are the revenue multiples untenable. Bear in mind that the margins on incremental revenue should be enormous. If Shopify can add $8 billion in revenue, there's no reason why it can't grow profit by $2 or even $3 billion. At a 25% tax rate, net income even at the low end of that range gets to $1.6 billion or so. Here, too, is a 45x P/E multiple that unreasonable assuming Shopify still has years of growth ahead from that point? Investors Modeling Shopify StockTo be clear, I'm not making the case for that model. Analysts aren't, either. Even before the downgrades of late, SHOP stock had outrun average Wall Street targets.But the point is that some investors might. And as long as there's a case on paper for Shopify stock, there's going to be room for upside. This is a hugely attractive business model. The addressable market is only going to expand as Shopify expands internationally and drives more revenue for medium- and large-sized businesses.Shopify could choose to challenge Salesforce.com (NYSE:CRM) in CRM software. It might be able to drive advertising revenue from customer websites (something akin to what Amazon.com (NASDAQ:AMZN) and Walmart (NYSE:WMT) are doing at the moment).Again, none of this is to say Shopify will do these things. But it's posting enormous growth, has a massive market, and is accumulating ever-more valuable customer data. And while at 14x next year's revenue and about close to 300x next year's earnings the current multiples look extreme, there's a path on paper for SHOP stock to grow into its current valuation.In a bull market, that can be enough. It's not like Square (NYSE:SQ), a potential rival, is cheap. CRM stock itself has seemed "overvalued" for years and keeps moving higher. This can work, at least in theory. Combine that with the negative sentiment, the so-called "wall of worry," and SHOP can continue to climb. How High?For what it's worth, I personally don't see any of this happening. I still believe investors are ignoring two key risks to SHOP stock. The first, as I wrote last year, is that the company retains significant exposure to small businesses that are usually the first victims of any economic downturn.The second, related, risk was highlighted by Morgan Stanley (NYSE:MS) in its downgrade last week. Over half of Shopify revenue is transaction-based. That, too, implies some exposure to economic cycles.The combination means that Shopify doesn't quite have the SaaS (software-as-a-service) model that is priced in at the moment. It's not going to drive the same amount of sticky, recurring revenue that is creating such optimism for SaaS plays. As a result, it shouldn't have the straight-line growth of a company like Salesforce.com (whose revenue growth has been almost spooky in its consistency).If that's the case, SHOP shouldn't be receiving a premium to pretty much every other SaaS stock. It should be receiving a discount. But, right now, many investors clearly disagree. And history shows they can disagree for quite a long time.In the meantime, SHOP can keep climbing the wall of worry. It's not impossible to project SHOP being a $100 billion business a decade or so from now. That in turn suggests that Shopify stock, today, should be worth around $360.I'm not saying SHOP will get there. I don't believe it should get there. But between the optimism in the chart and the pessimism everywhere else, I certainly wouldn't bet my money against it.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post If Shopify Stock Is Ever Going to Stop, It's Hard to See When appeared first on InvestorPlace.
JD, PDD, SHOP, ETSY, and GRPN Respond to Competition(Continued from Prior Part)Shopify moves to expand its businessShopify (SHOP) has refreshed its POS (point-of-sale) hardware lineup in an attempt to better serve small business clients. The
Adobe (NASDAQ:ADBE) isn't just Photoshop and PDF documents anymore. Indeed, ADBE stock has been an investment in a digital marketing company since early 2017. That's when it debuted Experience Cloud and Advertising Cloud: two platforms that help organizations market and measure their online efforts.Source: Shutterstock It has been a solid success as a result too, if for no other reason than those offerings drive recurring revenue.The company just took its e-commerce arm to a whole new level though, partnering up with sector giant Amazon.com (NASDAQ:AMZN). The deal helps Amazon's third-party sellers cultivate relationships and manage their business better.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMost fans and followers of Adobe acknowledged and respected the development. Not enough investors, however, seemed to fully appreciate the potential of this new offering for the ADBE stock price. Meet MagentoThe rise of third-party sellers on e-commerce platforms represented a hot button for years. But the matter came to a strange head last month when Amazon CEO Jeff Bezos lamented, "Third-party sales have grown from 3% of the total to 58%. To put it bluntly: Third-party sellers are kicking our first-party butt." * 7 High-Yield REITs to Buy (Even When the Market Tanks) The math is presumably correct, but the premise is misleading at best. Third-party sellers have never made up a bigger portion of Amazon's total sales than they do right now. However, they've also arguably never been more miserable about it thanks to their constant competition with Amazon's own retail-sales efforts.Amazon has been and continues to cheer "the little guy" using its sales venue, promising tools to better empower them. As it turns out, the company wasn't just blowing smoke. Its latest option does that and much more.The program is called "Branded Stores for Amazon Sellers." However, existing AMZN customers may recognize the new features look very similar to Adobe's Magento platform.Regardless of the wrapper and label, the results are the same: faster page-load times, better conversions, options to scale for online-shopping surges and one-click checkouts, just to name a few features. The platform also raises the profile of Adobe stock.Those niceties are secondary to what Magento's Branded Stores for Amazon Sellers ultimately delivers though. As Adobe's vice president of commerce product and platform Jason Woosley explains:Small and mid-market businesses are taking direct ownership over how they manage customer experiences to differentiate, grow and build loyalty. Our work with Amazon empowers this large community of sellers to get closer to their customers while saving them time and money on development. Relationship BuildingIt's a product development that cuts straight to the heart of a matter which has long frustrated several Amazon vendors. No matter how well the seller serves the customer, Amazon.com owns the relationship, and oversees the experience.Not any longer though. In an environment where would-be rivals like Shopify (NYSE:SHOP) are thriving explicitly because it's helping budding online entrepreneurs develop real customer relationships, Amazon is being forced to do the same.And Shopify is undoubtedly rattling Amazon's cage in this way. Shopify's director of product Michael Perry recently explained:The most important thing for entrepreneurs is to establish that direct relationship with their customers. Personally, I don't know why anyone would want someone else to own their customer relationship. Unfortunately, that's the exchange that takes place with a digital marketplace.It was a veiled jab at Amazon, but a well-deserved one. It's the new norm in e-commerce. Shopify has got several quarters of strong double-digit sales growth to verify it's this kind of platform that online retailers want.Adobe's solution is different than Shopify's though, in that Adobe's Magento isn't a one-stop-shop. Adopters can integrate Magento with multiple e-commerce venues.And it's already been integrated with another big one, as the partnership with Amazon isn't exactly exclusive. For instance, Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) now allows online sellers to manage their Google ad campaigns via Magento.It's hardly a threat (yet) to Amazon. But if Adobe continues to partner with anyone and everyone that wishes to take aim at Amazon.com, the half of the e-commerce market Amazon doesn't own could collectively make a dent in Amazon's dominance.And Adobe is more than happy to sell them their bullets. That bodes well longer term for the ADBE stock price. Bottom Line for ADBE StockIt's not necessarily a reason to step into ADBE stock, particularly right now. Shares are up 36% since their late-December low, and back within sight of record highs. The equity is vulnerable to profit-taking. This vulnerability is more pronounced in that Adobe stock never really burned off the froth of the 170% gain it reaped between the end of 2016 and September of last year.Besides, it's still the early innings for Magento's Branded Stores for Amazon Sellers, as well as for Magento's non-Amazon growth.There's little doubt as to the marketability of the new option for Amazon's third-party vendors, however, as well as for online retailers not using Amazon.com. It's one big step closer to the tool online sellers have been looking for.Therefore, it wouldn't be crazy to take a shot on ADBE stock on any decent pullback. The sentiment applies even before Magento has its full chance to make a fiscal impact.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post ADBE Stock May Win the E-Commerce War … From Behind appeared first on InvestorPlace.
At least one analyst who said shares of Shopify looked overheated, only to watch them keep climbing, heard about it from investors.
Baidu (BIDU) reports dismal first-quarter earnings due to weaker-than-expected online marketing environment, a slowdown in China and higher expenses.
Shopify (NASDAQ:SHOP), the money-losing e-commerce software company, remains a stock on fire. As recently as the start of the Trump Administration, this was a $50 stock. Shopify stock opened today above $275 per share.Source: Shopify via FlickrInvestors are valuing a company with $1.07 billion in sales last year, albeit on a pace to do $1.4 billion in 2019, at $30 billion. That's more than Square (NASDAQ:SQ), which had revenue of $3.3 billion last year and, unlike Shopify, is at least narrowing its losses.I have been writing about this bubble for 18 months, ever since Citron Research warned about it. I have warned the bubble is going to pop and other Investorplace writers, like Vince Martin, have written similarly.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs But it keeps going up. Pros Are Warning Against Shopify Stock TooNow even financial pros who make a living moving money (rather than writing about it) are warning people away. Guggenheim's Ken Wong says his bullish case is already priced into Shopify stock and has dropped his rating to neutral. Morgan Stanley (NYSE:MS) analyst Brian Essex has dropped his rating to underweight, noting that less than half of Shopify's revenue comes from subscriptions and SHOP doesn't deserve the multiple it's getting. The Bulls Are WinningThe bulls are ignoring the warning signs, but, more importantly, they're still winning. Shopify shares are up over 80% just in 2019. There are 28 analysts following the stock and more than half still have it on their buy lists .Bulls point to Shopify's latest earnings release, delivered April 30, with its 50% revenue growth year-over-year. Subscription revenue, Essex' concern, was up 40% at $140.5 million. Still not half the total but close.Others pounding the table for the stock call it "built to scale," allowing small businesses to grow without changing their infrastructure.Other bulls point to Shopify Plus, a more-expensive version of the software now being used by packaged-goods companies and celebrities like quarterback Tom Brady.Still other bulls point to the company's "ecosystem," specifically an app store that lets Shopify re-sell third-party modules and take a massive 20-30% cut of the revenue. Take Your MoneyIt's possible these bulls are right. Maybe the software is extremely well written and scalable. Maybe it can boost subscriptions with a higher-priced version. Maybe it can keep getting merchants to buy add-ons.But the hype, and the valuation, has reached 1999 levels. Shopify has never turned an annual profit, and in fact its losses are widening, year by year. There are fewer than 100 million shares of stock outstanding, 6% of which were being shorted at the end of April. It wouldn't take many people heading for the door to make it fall hard.In order to justify its valuation Shopify needs to keep growing at its present 40% rate and (more important) turn a profit. Some analysts are betting that will happen as early as the current quarter, although the "earnings whisper" is for another 30 cent per share loss. The Bottom Line on Shopify StockI was wrong on Shopify in 2017. I was wrong on Shopify in 2018.That doesn't mean I'm wrong on Shopify now.If you've been in SHOP stock, you have a very fat gain, you've made me look foolish, but a profit isn't a profit until you have it in your hands. Until then it's just paper -- or numbers on a screen. It is easy to fall in love with a stock, especially one that has made you a lot of money. * 6 Chinese Stocks That Could Pop On a Trade Deal But no boom lasts forever and when it slows, this stock will bust. I don't know how hard, but it's overvalued right now.Dana Blankenhorn is a financial and technology journalist. He is the author of he 2018 mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. 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 The Shopify Stock Bubble Could Burst at Any Moment appeared first on InvestorPlace.
There may very well be at least three reasons to not sell Canopy Growth (NYSE:CGC) stock. But the price chart is warning investors that they shouldn't buy CGC stock now. Let me explain.I enjoy reading InvestorPlace contributor Luke Lango's take on the markets. His analysis personally turned me on to both Shopify (NYSE:SHOP) and Twilio (NYSE:TWLO) long ago when many other traders and financial pundits were warning of their downside risks well before their subsequent, massive, triple-digit-percentage gains. KAAACCHHINGG! * 6 Chinese Stocks That Could Pop On a Trade Deal But getting back to Canopy Growth stock, this week Luke wrote that investors shouldn't sell Canopy Growth. The first reason he cited was trade-war headwinds being overblown and not really an issue for CGC. I totally agree with that. Still, that doesn't make Canopy Growth stock worth buying.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLuke also wrote that the slowdown in Canada's cannabis market isn't actually terribly alarming and discussed the tailwind of the still-untapped U.S. market. Those points are good reasons to not sell CGC stock, but they fail to make Canopy Growth stock worth buying at the moment.Now don't get me wrong. My caution on Canopy Growth stock doesn't mean that I'm advocating shorting CGC. I'm nowhere near ready to put Canopy Growth stock in the same boat as Tilray (NASDAQ:TLRY) whose fortunes have gone up in smoke over the past several months. However, considering the volatility of the cannabis market and the CGC stock chart, the shares aren't close to worth buying if history is any indicator. CGC Stock's Daily ChartThe volatile and some might say temperamental behavior of CGC stock has foiled bulls' attempts to exploit its positive trend using breakout strategies. That is illustrated by higher and above-average volume buy signals sent by triangle patterns, a classic short-handle consolidation and a very recent failed breakout as relative highs were cleared.But Canopy Growth stock has also been somewhat of an equal opportunity trap for bears too.The chart of CGC stock depicts a couple of breakdowns of CGC that were reversed. There was last summer's out-of-left-field explosive gain on partnership news with beverage giant Constellation Brands (NYSE:STZ). And earlier this spring a bear flag similarly failed after breaking down courtesy of a rally a short while later.Of course, some bulls might be quick to point out that, during both bearish patterns, CGC did not fall below the support provided by its 200-day simple moving average. That incidentally made CGC stock ripe for buying. That's true, but there's always a technical line on the price chart somewhere that drive buy decisions which work out favorably. The Bottom Line on CGCIn our view, CGC stock's squiggly price line is a tricky one to trade. And given the shares' history of volatile failures in the wake of breakdowns and breakouts, today's pullback pattern isn't a reason to sell Canopy Growth, but it does not make CGC worth buying just yet.Disclosure: 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 and related musings, follow Chris on Twitter @Options_CAT and StockTwits. 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 Why Canopy Growth Stock Isnat Worth Buying Yet appeared first on InvestorPlace.
While trade war hobgoblins may continue to haunt stocks this summer, we must consider the possibility that the recent market drop was a ruse. And by ruse, I mean a temporary pullback designed to scare the children before the market powers to new heights. In any case, there are still plenty of strong stocks to buy.Indeed, some escaped the market jitters with uptrends intact and new highs in reach. One recurring theme of the best stocks to buy on my watchlist is software. Today's trio of breakouts all hail from the same sector and industry. They boast growth metrics that Wall Street has been rewarding with big-league gains, and I see no reason why the gravy train won't continue.If anything, the recent turmoil has allowed sweet-looking bullish patterns to develop in these names providing lower risk entries for new trades.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell Before They Tank Your Portfolio Let's take a closer look at some notable software stocks to buy now. Shopify (SHOP) Click to Enlarge Source: ThinkorSwim 2019 is turning into a banner year for Shopify (NASDAQ:SHOP). The Canadian-born e-commerce company is up 96% year-to-date and boasts one of the best looking price trends on the planet. Last month's earnings announcement threw gasoline on the fire, sparking a resurgence in momentum.Last week's pullback was met by aggressive buyers at the rising 20-day moving average. The three-day follow through we've seen since has been relentless. And this morning's jump is pushing SHOP stock to a new record high.Throw it all together, and SHOP remains one of the best stocks to buy on the Street. If the price tag gives you pause, then consider using bull call spreads such as the July 270/290, which you can buy for around $9. MongoDB (MDB) Click to Enlarge Source: ThinkorSwim MongoDB (NASDAQ:MDB) scored one of the cleanest looking breakouts in the market yesterday. It cleared the descending trendline that has defined its behavior for the past two months. The resistance breach signals MDB stock is done resting and is ready to rise anew.The gap and run following its March earnings release shows buyers are willing to chase the stock at any price. It takes some serious firepower to push a $100 stock to $155 stock in a little over a week. And if yesterday's pop and this mornings follow through is any indication, I think we're going to see another strong push to new highs. * Top 7 Dow Jones Stocks of 2019 -- So Far Implied volatility is juiced for MDB options so if you're using derivative for your bet, try bull puts. You can sell the Jun 130/125 bull puts for $1.25 credit. Okta (OKTA) Click to Enlarge Source: ThinkorSwim Okta (NASDAQ:OKTA) is a San Francisco-based cloud software company that is up 73% year-to-date. Its shares barely budged during last week's market plunge, and it is breaking to record highs as I type. It has a long history of rewarding breakout buyers, and I suspect this morning's resistance breach will prove no different.With rising 200-day, 50-day and 20-day moving averages, bulls are dominating across all time frames. And volume patterns are largely supporting higher prices with many accumulation days in recent months.Don't overthink this one. The case for higher prices is solid. The next earnings announcement looms on May 30 and is the big X-factor that could disrupt what is otherwise a textbook bullish chart.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Sell Before They Tank Your Portfolio * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Low-Priced, High-Potential Tech Stocks to Buy Compare Brokers The post 3 Software Stocks to Buy As They Soar Higher appeared first on InvestorPlace.
Alibaba Group Holding's (BABA) fiscal fourth-quarter 2019 earnings are driven by steady improvement in core commerce and cloud businesses, along with strong growth in metrics.
When you look at the numbers, it's hard not to see the disconnect between value and price in Shopify Inc. (SHOP). While Shopify's surging revenue continues to impress investors with 55% year-over-year growth, the company is losing more money every year. Warning! GuruFocus has detected 5 Warning Signs with SHOP.
Agilent (A) reports weak fiscal second-quarter results due to slowing global demand in small molecule Pharma and softness in the China Food market.