|Bid||155.9400 x 1100|
|Ask||156.2900 x 900|
|Day's Range||154.50 - 160.20|
|52 Week Range||112.06 - 176.60|
|Beta (3Y Monthly)||1.91|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 30, 2018 - May 4, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||163.31|
Elliott Management Urges eBay to RestructureElliott reveals eBay stake On January 22, Elliott Management revealed a $1.4 billion stake in eBay (EBAY) stock, representing more than 4% of the company. Elliott Management, headed by billionaire
Shopify is a Canadian company, and one of the web's leading online retail platforms. On Black Friday weekend, 2018, Shopify's system completed more than $1.5 billion in sales transactions. In its Q3 2018 earnings report, Shopify reported a beat on EPS, showing 4 cents per share of earnings instead of the expected 2 cent loss.
Shopify Inc. , the leading omni-channel commerce platform, plans to announce financial results for its fourth quarter ended December 31, 2018 before markets open on Tuesday, February 12, 2019.
Shopify Inc (NYSE:SHOP) is a cloud-based commerce platform that focuses on small- and medium-sized businesses. If you consider that according to data compiled by the U.S. Census Bureau, that businesses in the U.S. that employed less than 500 workers accounted for 99.7% of all businesses, you would have a pretty good idea of the market potential that SHOP stock has. That still leaves nearly 20,000 businesses that have 500 employees or more, but the fact is, the U.S. is built on small- and medium-sized businesses. And that's why companies that have decided to look to this market as core to their business model are doing so well these days. Many younger workers are choosing to opt out of the 9-5 grind and look to follow their interests rather than be a corporate cog. Whether that's a good decision or not, isn't something that's worth discussing here. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Here, we're seeing the trend and we take advantage of the trend. Like payment processor Square (NYSE: SQ), SHOP is about empowering small business owners -- whether they're brick and mortar shops, strictly e-commerce or somewhere in between -- to build their business without having to hire bookkeepers and marketing departments until they have the time and money to deploy money into those resources. * 10 Growth Stocks With the Future Written All Over Them It's a DIY model that has great appeal to new generations of entrepreneurs who are interested in getting their ideas to market first, rather than building a corporate infrastructure. ### SHOP Stock Should Be On Your Buy List This also has a lot of attraction for investors. SHOP stock is up more than 30% in the past 12 months and 14% year-to-date. That's very impressive given the fact that it's not really making much of a profit yet. But it is growing rapidly. It has a $17 billion market cap and the Street loves what it sees. All this has been happening while SHOP has had two secondary offerings in the past year. Usually those dilute shareholder value and the stock drops. But not here because SHOP is all about taking that money and growing its business through acquisitions or expanding into new markets. The strategy has worked. And that is the key at this point. SHOP continues to grow its top line and make progress on its bottom line. Those are two very important features in a young growth stock in a developing market. * 7 Companies Apple Should Consider Buying My Portfolio Grader has SHOP stock at a B rating right now. Some of it is likely the fact that it hasn't yet turned a profit and some of it is -- this market has yet to find any real direction. Either way, at this point, SHOP is doing everything right. It has a strong platform that is growing. It has proven that it's able to deliver on growth, quarter after quarter. And it is in a very interesting market sector with a very strong brand. Granted, pure growth stocks aren't always the most stable stocks in the market, but if SHOP manages to become the brand leader in its sector, a long-term ride may be very rewarding. 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 * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Apple Should Consider Buying * 7 Beaten-Up Housing Stocks Due for a Bounce Back * Take Buffett's Advice: 5 Vanguard Funds to Buy Compare Brokers The post Earnings Are Coming: Buy Shopify Stock While Itas Cheap appeared first on InvestorPlace.
Facebook (NASDAQ:FB) stock has shown some signs of life of late. FB stock hit its lowest levels in almost two years in December. But the New Year has been good to FB stock, which has risen over 10% in 2019. I'm still skeptical about FB stock, as I wrote last month. Facebook stock unquestionably is cheap. But the company's spending is rising in 2019 , which is one reason that the market cap of FB stock suffered the biggest single-day decline in stock market history in August . Meanwhile, regulators are still on the prowl, and Facebook's user growth almost has to decelerate, given its worldwide reach. But I'm clearly on the opposite side of Wall Street, which continues to embrace FB stock. That optimism no doubt has contributed to this year's gains. And if analysts are right, FB stock has more room to rise. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy as the Dollar Weakens ### The Street Defends Facebook Stock At least four analysts have made bullish arguments about FB stock in just the last two weeks. JPMorgan Chase called it a "best idea", and assigned Facebook stock a price target of $195. Barclays called FB "the best opportunity in large-cap Internet (stocks)." Baird, too, assigned FB stock a $195 target. And as InvestorPlace's Harriet Lefton noted this week, RBC Capital called Facebook stock one of its 10 best for 2019. Even Citron Research, better known as a short-seller of stocks like Bausch Health (NYSE:BHC) and Shopify (NYSE:SHOP), has been bullish on Facebook stock. Those analysts aren't alone: the average price target on Facebook stock, according to finviz.com, sits at $187. That figure suggests that FB stock can rise another 25% this year. The analysts' main points are different, but they share some similar themes. Citron and RBC both highlight the value of Instagram and WhatsApp, two of the company's platforms that haven't been monetized to the same extent as its namesake website. JPMorgan Chase noted that Facebook usage is "stickier than many think;" in other words, most users haven't left the site despite the negative publicity of 2018. Barclays agrees, as the firm predicts that FB will report higher-than-expected daily average users (DAUs) when it announces its Q4 earnings, likely later this month. And pretty much every bull points to the current valuation of FB stock, which is cheap. FB still trades at around 20 times analysts' consensus 2019 EPS estimate, and the valuation of Facebook stock is closer to 17 times after excluding the company's cash hoard. The valuation of FB stock suggests that its growth is pretty much coming to an end. And so it's not too surprising that analysts who don't believe the company's growth is over are arguing that FB stock should get more credit and higher multiples. ### FB Stock Ahead of Earnings The rising sentiment towards Facebook stock, both from analysts and investors, sets up an important fourth-quarter earnings report for FB. In a lot of ways, the bull case on FB is based on the idea that the bad news already is baked into FB stock at its current levels. We already know that the company's earnings growth is going to slow as its spending on security rises. CEO Mark Zuckerberg has apologized for the company's slow response to security issues, and he and his company are working to improve on that front. And so there's an obvious case that bulls can make in the wake of the Q4 report. Specifically, they can argue that the company's user-growth figures remain solid, showing that the public still trusts FB or at least still uses its services. Meanwhile, they will likely be able to say that the company's 2019 outlook remains roughly in- line with investors' already-low expectations. Facebook's revenue will likely still be poised to grow 25%+ this year (analysts' consensus estimate is 26.5%), reminding investors that the company is still growing. And the same analysts who are backing FB stock now will reaffirm their price targets or even raise them. FB stock will respond by rising, and the 2019 rally will continue. Truthfully, I wouldn't be surprised to see that scenario play out. Investors who are bullish on FB probably should look to buy FB ahead of its earnings. But from a longer-term perspective, FB stock is still facing a lot of risk. Indeed, the key question is whether the bad news really is behind Facebook stock. If it is, the company's Q4 numbers can give it somewhat of a fresh start, and its late-2018 lows look like a bottom. But if there's more bad news ahead for FB, the early-year gains of FB stock were just a false start. And actually, I can't quite shake the feeling that there's something else coming down the pike. As of this writing, Vince Martin has no positions in any securities mentioned. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post The Street Is Bullish on Facebook Stock appeared first on InvestorPlace.
Why Square Is Up Over 5% TodaySquareToday, Square (SQ) stock is trading on a strong bullish note after largely mixed movements over the previous five sessions. The stock posted a high for the day of $69.38, up about 5.3% from Wednesday’s closing
Everyone seems to love Shopify (NASDAQ:SHOP) stock. Call me an old fogey, but I don't get it. At its market cap of $17 billion, investors are paying roughly 17 times expected 2018 revenue. There is an awesome growth rate of roughly 30% on the top line, but profits remain stubbornly out of sight, and analysts don't expect any this quarter, a loss of six cents per share on revenue of $314 million. Shopify did have positive operating cash flow in its September quarter, but at $2.86 million that's nearly a rounding error. The bulk of its rising cash flow still comes from investment and financing. InvestorPlace - Stock Market News, Stock Advice & Trading Tips But analysts still love the stock. There are now 29 following it, and 16 have it on their buy lists. They're expecting 71 cents per share of earnings for 2019. I suspect they will be disappointed, as they have been disappointed by past Canadian tech stars like Corel and Blackberry (NASDAQ:BB). ### SHOP Stock Is Good at Growth What Shopify seems to be best at is finding new merchants and selling stock. Wells Fargo (NYSE:WFC), for instance, pounded the table for Shopify last month just as it was completing an offering of 2.4 million shares, with limited voting rights, at $154 per share. After a week's fall for the tech wreck, those shares took off and opened for trade January 16 back at the offering price. The offering raised about $400 million, bringing the company's cash pile to $2 billion, which it has been using to launch into new markets, acquire other companies like Sweden's TicTail, and offer loans to its merchant clients. Shopify says its developers brought in about $2 billion in 2018, while its own revenues are approaching $1.1 billion. The app store, where shopkeepers can get things like Web-to-print product Brush Your Ideas, is Shopify's secret sauce, because it takes 20% of that revenue, and this helps it compete with rivals like Adobe (NASDAQ:ADBE) Magento or privately held Squarespace and BigCommerce. But Shopify doesn't seem to have the same respect for its customers' customers. The online world is filled with scams and dodgy merchandise, and Shopify is regularly shocked, shocked by what happens to consumers in its stores. Until recently, for instance, one of its merchants was a gun store that reportedly moved $11.4 million through a Shopify store. Shopify has also served Instagram "stars" with drop-ship scams which claim to be giving away valuable merchandise but are actually up-selling junk. ### How Big? While Shopify stock is very volatile, it's no longer the home run it was in 2017, when it doubled in price. Over the last year it has traded for as little as $111 per share and for as much as $174, matching the volatility of the market. If you bought it just after Christmas, you look like a genius. If you bought two weeks before you look like an idiot. Most news on Shopify involves the stock, not the company or its technology. You'll find stories asking if it's the next Amazon.Com (NASDAQ:AMZN), a millionaire maker stock. InvestorPlace writers disagree on the company's future. James Brumley sees headwinds while Chris Lau sees another great quarter for the company. ### The Bottom Line on Shopify Stock Maybe it's because I've been following the Internet for 40 years, but I still have a suspicion, as I wrote over a year ago, that the Shopify story is going to end in tears. The company seems to be all about getting new customers, opening new stores, selling more apps, and not about pleasing consumers, which is the metric by which real stores, and real companies, are measured. You may make money on Shopify with quick moves, but I don't see a long-term future here. Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now 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 shares in AMZN. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post The Shopify Hype Continues appeared first on InvestorPlace.
Shopify is home to around 770,000 merchants from across the world, which pales in comparison to the approximate 30 million small business in the U.S. alone. Wong said this would explain why just 3 percent of the 272 small businesses the firm surveyed use Shopify to facilitate their online business. Encouragingly, the small exposure implies Shopify's penetration is still low and it has plenty of opportunity to gain market share.
[Editor's Note: This article was originally published in September 2018. It has been updated to reflect changes in the market.] Amazon (NASDAQ:AMZN) has been one of the more impressive stocks of the past 25 years. In fact, AMZN now has returned well over 100,000% from its initial public offering (IPO) price of $18 ($1.50 adjusted for the company's subsequent stock splits). A large part of the returns has come from two factors. First, Amazon has vastly expanded its reach. What originally was just an online bookseller now has its hands in everything from cloud computing to online media to groceries. And its shadow is even larger … Amazon's buyout of Whole Foods rattled the retail market. Similarly, its entry into healthcare by buying PillPack -- as well as its healthcare partnership with Berkshire Hathaway (NYSE:BRK.B) and JPMorgan (NYSE:JPM) -- sent ripples through the healthcare sector. In response, Microsoft (NASDAQ:MSFT) teamed up with Kroger (NYSE:KR) to "build the grocery store of the future." And this week, MSFT and Walgreens (NASDAQ:WBA) announced a partnership to fend off Amazon. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Secondly, as a stock, AMZN has managed the feat of keeping a growth stock valuation for over two decades. I've long argued that investors can't focus solely on the company's high price-earnings (P/E) ratio to value Amazon stock. But however an investor might view the current multiple, the market has assigned a substantial premium to AMZN stock for over 20 years now, and there's no sign of that ending any time soon. * Top 10 Global Stock Ideas for 2019 From RBC Capital It's an impressive combination, and one that's likely impossible, or close, to duplicate. But these five stocks have the potential to at least replicate parts of the Amazon formula. All five have years, if not decades, of growth ahead. New market opportunities abound. And while I'm not predicting that any will rise 100,000% -- or 1,000% -- these five stocks do have the potential for impressive long-term gains. ### Stocks That Could Be the Next Amazon Stock: Square (SQ) Source: Chris Harrison via Flickr (Modified) Admittedly, I personally am not the biggest fan of Square (NYSE:SQ) stock. I like Square as a company, but I continue to question just how much growth is priced into SQ already. Of course, skeptics like myself have done little to dent the steady rise in AMZN stock. And valuation aside, there's a clear case for Square to follow an Amazon-like expansion of its business. Back in January, Instinet analyst Dan Dolev compared Square to Amazon and Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG), citing its ability to expand from its current payment-processing base: "In 10 years, Square is likely to be a very different company helped by accelerating share gains from payment peers and relentless disruption of services like payroll and human resources." Just as Amazon used books to expand into e-commerce, and then e-commerce to expand into other areas, Square can do the same with its payment business. The small business space is ripe for disruption, as Dolev points out. Integrating payments into payroll, HR, and other offerings would dramatically expand Square's addressable market - and lead to a potential decade or more of exceptional growth. Again, I do question whether that growth is priced in, with SQ trading at well over 90x forward earnings. But if -- again, like AMZN -- Square stock can combine a high multiple with consistent, impressive, expansion, it has the path to create substantial value for shareholders over the next five to 10 years. ### Stocks That Could Be the Next Amazon Stock: JD.com (JD) Source: Daniel Cukier via Flickr In China, JD.com (NASDAQ:JD) is the company closest to following Amazon's model. While rival Alibaba (NYSE:BABA) gets most of the attention, it's JD.com that truly should be called the "Amazon of China." Like Amazon (and unlike Alibaba), JD.com holds inventory and is investing in a cutting-edge supply chain. It, too, is expanding into brick-and-mortar grocery, like Amazon did with its acquisition of Whole Foods Market. A partnership with Walmart (NYSE:WMT) should further help its off-line ambitions. JD.com is even cautiously entering the finance industry. At the moment, however, JD stock is going in the exact opposite direction of AMZN. The stock has plunged of late. An arrest of the company's CEO has been a recent driver. So have mixed earnings reports and a Chinese bear market. Clearly, there are myriad risks here, even near the lows. But AMZN saw a few pullbacks over the years as well. And while JD may never rise to the scale of Amazon -- or even out-compete Alibaba -- at its current valuation it doesn't have to. JD now trades at near-40x forward EPS. That's despite a series of investments depressing near-term profitability -- and building out long-term capabilities -- and 40% revenue growth in 2017, with expectations for a nearly 30% increase in 2018. * 7 Media Stocks That Make Prime M&A Targets If investor confidence returns, JD has a path to enormous upside. And even with the near-term jitters facing the stock, the long-term strategy still seems intact, and likely the closest in the market to that of Amazon. ### Stocks That Could Be the Next Amazon Stock: Shopify (SHOP) Source: Shopify via Flickr E-commerce provider Shopify (NYSE:SHOP) probably doesn't have quite the same opportunity for expansion as Square. And it, too, has a hefty valuation, along with a continuing bear raid from short-seller Citron Research. But I've remained bullish on the SHOP story, even though valuation is a question mark, even after a recent pullback. Shopify is dominant in its market of offering turnkey e-commerce services to small businesses. That's exactly where consumer preferences are headed: small and unique over large and bland. And because of offerings like Shopify (and Amazon Web Services), those small to mid-sized businesses can compete with the giants. Meanwhile, Shopify does have the potential to expand its reach. Just 29% of revenue comes from overseas, a proportion that should grow over time. It's moving toward capturing larger customers as well through its "Plus" program, picking up Ford (NYSE:F) as one key client. The development of an ecosystem for suppliers and the addition of new technologies (like virtual reality) give Shopify the ability to offer more value to customers … and to take more revenue for itself. Like SQ, SHOP is dearly priced. But both companies have an opportunity to grow into their valuations. And considering long runways for Shopify's adjacent markets, it should keep a high multiple for some time to come. As a stock, if not quite as a company, SHOP has a real chance to follow the AMZN formula for long-term upside. ### Stocks That Could Be the Next Amazon Stock: Roku (ROKU) Source: Shutterstock Roku (NASDAQ:ROKU) might have the best chance of any company in the U.S. market to follow Amazon's strategic playbook. The ROKU stock price is a concern, given that the stock more than doubled in April and it has continued to climb higher, even amid the selloff in tech stocks in October. At 10x revenue, ROKU isn't close to cheap. But -- perhaps even more so than Square -- Roku now isn't what Roku is going to be in ten years. The hardware business is a loss leader, but one that allows Roku to serve as the gateway to content for millions of customers. As the company pointed out after recent earnings, it's already the third-largest distributor of content in the U.S. The Roku Channel is seeing increasing viewership. It's already up to more than 27 million viewers! The company offers pinpoint targeting of advertisements -- without the messy data problems afflicting Facebook (NASDAQ:FB). Roku is becoming increasingly embedded in TVs, though a deal between Amazon and Best Buy (NYSE:BBY) raised some fears about those software efforts going forward. It has a plan to roll out home entertainment offerings like speakers and soundbars, creating a long-sought integrated experience. It could even, as it grows, look to develop or acquire content itself, positioning Roku not as just a conduit to Netflix (NASDAQ:NFLX) but a rival. * 7 Video Game Stocks on Steep Discount The bull case for Roku stock is that its players are like Amazon's books -- not a great business on their own, but a way to garner customers and get a foot in the door of the exceedingly valuable media business. What Roku does now that it has entered will determine the fate of ROKU stock. But the amount of options and still a somewhat modest market cap (under $5 billion) mean that betting on its strategy could be a lucrative play. ### Stocks That Could Be the Next Amazon Stock: Workday (WDAY) Source: Workday Workday (NASDAQ:WDAY) is starting to look like the enterprise software version of Amazon. Its core HR product has driven huge gains in WDAY stock, which now has a $36 billion market cap. But Workday is just getting started. The company previously announced that it would buy Adaptive Insights to build out its financial planning capabilities. It has already rolled out analytics and PaaS (platform-as-a-service) offerings that add billions to its addressable market. Here, too, valuation looks stretched, to say the least, but the story here still looks attractive. Workday is never going to be as famous as Amazon, or as large. But if its strategy works, it will be as important to, and as embedded with, its corporate customers as Amazon is with its consumers. As of this writing, Vince Martin has no positions in any securities mentioned. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post 5 Stocks That Could Be the Next Amazon appeared first on InvestorPlace.
In late 2018, financial markets tumbled on concerns regarding rate hikes, trade tensions and slowing global economic growth. The biggest victims in that market sell-off were growth stocks, which essentially required low rates and continued healthy global growth to sustain their valuations. Those things were being called into question in late 2018. As such, many of the market's high-flying glamour stocks fell 20% or more. Sentiment has changed sharply in 2019. Stocks had a huge, decade-large rebound rally the day after Christmas. Stocks have remained on an uptrend ever since because the Federal Reserve has sounded a much more dovish tone regarding rate hikes, U.S. and China trade talks are progressing well, and the U.S. economy appears to still be quite strong. All in all, the risks which plagued markets in late 2018 are easing in early 2019. As they have, financial markets have rallied, and growth stocks -- which were the biggest losers in late 2018 -- have been among the biggest winners in early 2019. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This trend should continue. As bullishness returns to the market, money will continue to flow into growth stocks, and growth stocks will outperform. * 8 Dividend Stocks With Growth on the Horizon With that in mind, let's take a look a 10 growth stocks that could win big as markets rebound in 2019. ### Shopify (SHOP) Source: Shopify via Flickr One growth stock that should perform well in both 2019 and over the next five to 10 years is Canadian based e-commerce solutions provider Shopify (NYSE:SHOP). The long-term growth narrative supporting SHOP stock is quite promising. E-commerce is the future. More than that, decentralized e-commerce is the future. Today, the e-commerce market is dominated by a few big players. That won't remain the case forever. Eventually, everyone and anyone in the retail world will have a digital footprint, and that means that over the next several years, there will be a huge influx of new digital retail operations. Shopify provides the building blocks for those digital retail operations. As such, Shopify's addressable market should grow by leaps and bounds over the next several years. Considering Shopify is the head-and-shoulders leader in this space, huge growth in the addressable market will translate into huge growth for the company. Reasonably speaking, huge growth at the company will lead to huge gains for SHOP stock. The stock is already up over 25% since bottoming on Christmas Eve. Thus, a near-term pullback is healthy here and now. But that pullback should be bought, because the stock will ultimately head way higher in a multiyear window. ### Tesla (TSLA) Source: Shutterstock Next up on this list is one of the more controversial names on Wall Street, but nonetheless one that represents huge upside potential in a multiyear window. There has been no shortage of controversy surrounding Tesla (NASDAQ:TSLA) over the past several quarters. But in the big picture, Elon Musk has remained at the head of the company, Model 3 production and delivery ramp has been wildly successful, the company has managed to turn a profit, international expansion is progressing as planned and cash burn issues are no long front and center. Those are all positive developments. As such, Tesla stock is currently at the upper tend of its 52-week trading range. This strength in Tesla stock will persist in the long term. At its core, this company is at the center of a huge electric vehicle growth narrative that will inevitably and perhaps rapidly sweep across the globe over the next several years. As it does, Tesla will announce more vehicles with better prices, and the company will grow its market share dramatically. Revenue growth will huge. Profit growth will be huge. Tesla stock will march higher. * 10 A-Rated Stocks the Smart Money Is Piling Into Tesla stock is up 16% since Christmas Eve. That's a pretty big rally. Much like Shopify, a near-term pullback is warranted. But, also like Shopify, that pullback is a buying opportunity, since long-term growth trends imply massive multiyear upside. ### Square (SQ) Source: Via Square One of the biggest losers in late 2018 was payments processor Square (NYSE:SQ). But, that also means that this stock has an opportunity to be one of the biggest winners in 2019. Square is at the heart of tomorrow's commerce world, which will inevitably be cash-less and dominated by card and digital payments. Right now, Square dominates on the physical card payment side of things. The company is famous for its payment processors, which allow essentially any retailer with a smartphone to accept card payments. Go to any mall or street market. You will see Square machines everywhere. The proliferation of these payment processors will continue over the next several years as cash becomes increasingly less used. But, that's just one peg of this growth narrative. The other peg has to do with e-commerce. For a long time, Square didn't really have an e-commerce presence. Until now. The company recently launched an in-app payments system that looks very much like PayPal (NASDAQ:PYPL). In so doing, the company has plunged itself into the e-commerce growth narrative too, and only added more firepower to the long-term growth narrative. Square stock is up over 30% since Christmas Eve. That's a huge rally. A pullback is warranted here. But, much like the other stocks on this list, pullbacks in Square are buying opportunities. ### Salesforce (CRM) Source: Shutterstock A discussion of big-growth stocks has heavy overlap with a discussion of cloud stocks, and if you were to have a discussion regarding cloud stocks, that conversation would likely be dominated by Salesforce (NYSE:CRM). CRM stock is truly at the heart of the cloud and data revolutions. Salesforce leverages data and analytics to deliver robust cloud solutions to enterprises that want data-driven insights on their customers. In this sense, the company takes data and turns it into insights via cloud solutions. That promises to be one of the most valuable processes in a world defined by Big Data. There's a lot of competition in this space, but Salesforce has time and time again squashed the competition. Despite rising competitive threats and tougher laps, revenue growth at Salesforce has hardly slowed over the past several years. Back in 2014, revenues grew by 33%. In fiscal 2018, revenues grew by 25%. They are projected to grow by more than 25% this year. Resilient revenue growth in a secular growth industry implies that this company has huge long term potential. * 7 Stocks at Risk of the Global Smartphone Slowdown CRM stock is up 22% since Christmas Eve. But, it remains well off its all time highs, and technical indicators don't scream overbought. As such, this stock has more runway to the upside in the near to medium terms. ### Trade Desk (TTD) Source: Shutterstock Programmatic advertising is the future of the entire advertising industry, and the company at the forefront of the programmatic advertising revolution is The Trade Desk (NASDAQ:TTD). Ads used to be transacted through individuals and firms. You call somebody, you discuss, you negotiate a price and then you have an ad. Now, ads are bought and sold by computers. This computed-powered ad buying is called programmatic advertising. It's the future. Through leveraging AI and data, programmatic advertising makes ad buying and selling quicker, more convenient and cheaper than ever before. In this space, Trade Desk has emerged as a clear leader. But Trade Desk only has a $6 billion market cap. The global advertising industry measures in at $1 trillion. Eventually, all $1 trillion worth of ads will be transacted programmatically, and most of that programmatic spend will happen through Trade Desk. Thus, this is a small company attacking a huge market, and that implies huge gains ahead for TTD stock. Right now, the stock is up 27% since Christmas Eve, and is entering a near-term overbought position. Thus, a near-term pullback is likely in the cards. But, much like other pullbacks in this stock before, the next pullback will simply be a buying opportunity. ### Netflix (NFLX) Source: Vivian D Nguyen via Flickr (Modified) Despite weakness in the stock, the long term bull thesis surrounding streaming giant Netflix (NASDAQ:NFLX) is only getting stronger every day. The Netflix growth narrative is all about two things: cord cutting and content. So long as consumers cut the chord and pivot to streaming, and so long as Netflix's content is superior to content offered by streaming peers, Netflix's subscriber base will grow. Prices will go up without churn, too, and margins and profits will explode higher. Those two trends are progressing favorably for Netflix. The cord-cutting trend isn't slowing. If anything, it's accelerating. Moreover, Netflix's content isn't getting worse. Again, if anything, it's only getting better, thanks to recent hits like Bird Box and Black Mirror. As such, the two long-term growth trends here remain favorable, meaning that the long-term bull thesis on NFLX stock is only gaining credence and visibility. * Morgan Stanley: 7 Risky Stocks to Sell Now NFLX stock is up a whopping 52% since Christmas Eve. This stock has fundamentally supported upside from here. But it is technically overbought, and needs to cool off and consolidate before taking another leg higher. ### Roku (ROKU) Source: Shutterstock Among the biggest losers during the market sell-off in late 2018 was streaming player maker Roku (NASDAQ:ROKU). But the growth narrative underlying the company only strengthened in late 2018, thus implying huge rebound potential in 2019. Much like Netflix, there are only two trends that matter in the long run with Roku: cord cutting and competition. As stated earlier, the cord cutting trend is only accelerating. That means more streaming subscribers than ever, and more streaming services than ever, too. All those subscribers need a content-neutral centralized aggregation system to curate and access all those streaming services. As such, so long as consumers keep cutting the cord, demand for Roku devices will head higher. On the competition front, Roku has tons of competition. But, the company still commands 40% share in the streaming device market and 25% share in the smart TV market. So long as the company can defend its market leadership position, Roku will continue to convert the lion's share of cord cutters into Roku ecosystem users. ROKU stock is up nearly 50% since Christmas Eve. The stock needs to cool off and consolidate here. But, once that consolidation period is over, this uptrend will resume for the duration of 2019. ### Twilio (TWLO) Source: Web Summit Via Flickr While many other growth stocks remain well off their all-time highs, cloud giant Twilio (NASDAQ:TWLO) is right near its all-time high, and that's a testament to the strength of this company's underlying growth narrative. Over the past several quarters, Twilio has emerged as the uncontested leader in the rapidly growing and potentially huge Communication Platforms-as-a-Service (CPaaS) market. The CPaaS market largely consists of companies that are integrating real-time communication into their services. This market promises to be huge to continuous shifts towards cloud-based communication, personalized customer experience and digital engagement. Twilio is growing its customer base and revenues rapidly in this secular growth market. They also have a 95%-plus retention rate and very high gross margins. Put that all together, and this company has all the ingredients to be a big time winner in a long-term window. * 10 Stocks You Can Set and Forget (Even In This Market) TWLO stock is just below all-time highs today. This resilience is impressive, and it means that the stock hasn't rallied as much as the other stocks in this list over the past two weeks. As such, you don't have any near term overbought conditions, and now could be as good a time as any to load up for the long haul. ### Nvidia (NVDA) Source: Shutterstock Once high-flying chipmaker Nvidia (NASDAQ:NVDA) saw more than half of its value wiped out in late 2018 thanks to near-term inventory, growth, and margin issues. But, in the big picture, those issues are overstated, and NVDA remains one of the best growth stocks in the market. The growth narrative at Nvidia is all about AI and data. Recent numbers suggest there is absolutely zero slowdown in those businesses. All businesses related to AI and data, including the data-center and automated driving businesses, reported record numbers and huge growth last quarter. Instead, all the issues with Nvidia have to do with a pop in cryptocurrency mining demand that created inventory issues which will take time to work through. Nvidia will inevitably work through those issues. Once they do, the narrative will re-focus on this company's long term growth drivers in AI and data. Those drivers have been very strong, are still very strong, and will remain very strong, given secular shifts towards data-driven decision making and automated technologies. So long as those drivers remain strong, NVDA stock will head higher. NVDA stock is up 20% since Christmas Eve. That's a solid rally. But, the stock isn't flashing any overbought signals. As such, it looks like this rally can and will continue in the near term. ### Amazon (AMZN) Source: Shutterstock The world's most valuable company -- Amazon (NASDAQ:AMZN) -- is also one of the market's most attractive and promising growth stocks. We all know Amazon for its e-commerce and cloud business. Between those two businesses, Amazon has a ton of long term growth potential as e-commerce becomes the global retail norm and cloud becomes the enterprise norm. But, that's just the tip of the iceberg for Amazon. The company also has a $10 billion and rapidly growing digital advertising business with presumably sky-high margins. There's the offline retail business, which started with bookstores, moved to Whole Foods and will eventually include thousands of convenience stores and potentially even Target (NYSE:TGT). There are also potential multi-billion logistics and pharmaceutical businesses in the pipeline. Between all these growth opportunities, it's easy to see that Amazon is still in the early innings of arguably the market's biggest and most exciting growth narrative. * 8 Dividend Stocks With Growth on the Horizon AMZN stock is up 20% since Dec. 24. But, it's also still 20% off recent highs. Thus, while a near term pullback is warranted and healthy, this stock still has plenty of room to rally in a medium to long term window. As of this writing, Luke Lango was long SHOP, TSLA, SQ, PYPL, TTD, NFLX, ROKU, NVDA, AMZN and TGT. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post 10 Growth Stocks With the Future Written All Over Them appeared first on InvestorPlace.
The unique offering of Shopify (NYSE: SHOP) for business owners keeps competitors out of the space. So markets may expect another round of strong quarterly earnings. Last quarter, the company reported profits and revenue that beat consensus last quarter. This time, the only unpredictable near-term risk is whether or not the stock's valuation will bring selling pressure. In light of markets getting skittish, a correction in the share price may create an entry point. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Stocks With Growth on the Horizon ### Strong Momentum and Shopify Stock Shopify added shipping features that help merchants sell more and work more effectively. Its users are getting benefits from the partner ecosystem. And the launch of its new App Store last September is leading to meaningful conversation rate increases for app installations after the user performs a search. Shopify's profit margin keeps growing because the features it develops also adds value at the transaction levels. As revenue from merchants grows, so does GMV. This is a win-win for both Shopify stock and its customers. On its conference call, management mentioned Fraud Protect as an example of a feature that adds value for the merchant by preventing fraudulent charge-backs. In return, Shopify earns a small fee for the service. ### Shopify Plus and Shopify Stock Ahead of the busy holiday season, hundreds of fast-growing merchants joined Shopify Plus. The offering primarily targets big retailers. For instance, The Brick and Leon's Furniture is a large-sized firm in Canada that is signed up for Shopify Plus. Unilever (NYSE: UL) is a Shopify Plus client. Even more potentially valuable as a growth catalyst is the addition of licensed cannabis stores fronts. After Canada legalized cannabis on Oct. 17, 2018, Shopify will definitely benefit from more and more companies opening up. ### Cannabis a Positive Catalyst Limited supply and unknown regulatory changes in cannabis is a potential headwind limiting Shopify's growth. If markets priced in much of the growth ahead on the basis of companies making billions in sales, SHOP stock is at risk of falling. Still, management did not model for exuberant growth from the legalization of cannabis. In fact, it is broadening its market geographically to capture growth. ### Global Growth Shopify recognizes the importance of international markets for expansion. With 70% of the largest e-commerce markets being non-English speaking, Shopify must localize its platform in each region it enters. In Germany, Shopify tailored Shopify Payments to accept not just credit card payments but also local bank transfers. This approach, customizing the uniqueness of the German markets, will likely result in strong growth in this region. ### Shopify Still Losing Money Despite the highlights as mentioned above, plus the 55% Y/Y GMV expansion to $10 billion, Shopify still reported an adjusted operating loss of $3.6 million in the third quarter. Its adjusted net income was $4.5 million or just $0.04 a share. It ended Q3 with $1.6 billion in cash and cash equivalents. The profits look small but fast-growing firms like Amazon.com (NASDAQ: AMZN) reported losses and minuscule profits for years before the stock topped out at over $2000 a share in the last year. ### Outlook Shopify raised its forecast for the full year. It now expects revenue growing 55% and in the range of $1.45 billion and $1.55 billion. Operating income will be $8 million to $10 million. For the fourth quarter report, scheduled for Feb. 14, the firm expects revenue of $315 million - $325 million. Adjusted income will be between $16 and $18 million. Shopify will also spend $30 million in stock-based compensation in that period and $105 million for the full year. ### Limited Risk to Growth Shopify is not likely to report slowing growth in the near-term. Even though it is attracting big customers, its primary market is the small and medium merchant. Its Shopify Plus targets such businesses and is not an area competitors are as interested in. So for the foreseeable future, expect the pricing model to stay the same, which in turn will lead to more merchants signing up. Disclosure: the author does not own shares in any of the companies mentioned. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post Here's Why Shopify Stock Should Have Another Great Quarter appeared first on InvestorPlace.
Perhaps stung by the nationalistic backlash against Barrick Gold Corp.’s merger with Randgold Resources Ltd., Newmont Mining Corp. devoted a big chunk of its news release Monday explaining how its $10 billion offer for Vancouver-based Goldcorp Inc. will help Canada. Like “New Barrick,” which no longer has its top executives in Canada, Newmont Goldcorp’s incoming chief executive officer and current chairwoman are expected to remain in the U.S. While some jobs will flow from Nevada to the miner’s new regional base for North America in Vancouver, it’s hard to imagine the influence of that city not waning as a result of the deal.
Last week, Wix.com Ltd. (WIX) announced that it had received approval from the court for its proposal to increase the maximum amount of its share repurchase plan from $80 million to $100 million. Warning! GuruFocus has detected 1 Warning Sign with WIX. The company's shares have gained 15% since Jan. 3 with investors moving in to act on the good news released a day before, via an SEC filing .
eCommerce Updates: eBay, JD, and Shopify (Continued from Prior Part) ## Roughly $2.0 billion in cash Last month, Shopify (SHOP) raised about $400 million through the sale of 2.6 million new shares. The company said it intended to use the proceeds from the sale of shares to strengthen its balance sheet, which should provide more flexibility to fund its growth strategy. Shopify exited the third quarter of 2018, the most recent reported period, with $1.6 billion in cash. The sale of new shares placed the company on track to close 2018 with $2.0 billion in cash. ## Making cash advances to merchants Shopify has been pursuing growth by creating new products, acquiring other companies, launching in more countries, and extending credit to its merchant clients to help them grow their businesses. In the third quarter of 2018, Shopify extended $76.4 million in cash advances to its merchant clients, raising its total cash advances to $375 million since 2016. Extending cash advances or loans to merchants has become a popular strategy for ecommerce companies to try to drive growth. Amazon (AMZN) has extended more than $3.0 billion in loans to tens of thousands of sellers on its marketplace. Last year, eBay (EBAY) tapped Square (SQ) to extend small loans to its sellers. PayPal (PYPL) also makes small business loans and has written more than $6.0 billion in such loans since 2013. ## Revenue jumped 58% Shopify’s revenue rose 58% year-over-year to $270 million in the third quarter of 2018. It guided for fourth-quarter revenue in the range of $315 million–$325 million. Shopify is expected to report its fourth-quarter results on January 24. Browse this series on Market Realist: * Part 1 - Why Morgan Stanley Downgraded eBay * Part 2 - JD Mall’s Restructuring Plans: What You Need to Know * Part 3 - How JD Will Fund Its $1.0 Billion Repurchase Program
Amid the bloodshed in the broader technology space, PayPal (NASDAQ:PYPL) is a breath of fresh air. While so many other names have cratered, PYPL stock returned a little over 13% last year. True, that pales in comparison to the gargantuan rise of PYPL in 2017, but given the context, no one is complaining. Still, investors shouldn't get complacent. Although the digital-payments processor has avoided much of the market's recent drama, PayPaL stock was not completely immune. Last autumn, the record-breaking momentum of PYPL suddenly halted. From September through December, PayPal stock gyrated wildly and did not find any meaningful traction. Even more worrisome, PYPL stock fell meaningfully on Thursday. After Apple (NASDAQ:AAPL) lowered its revenue guidance due to poor iPhone sales in China, nearly all tech stocks fell. Although PayPal isn't directly impacted by Apple's problems, the news has negative implications for it. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 A-Rated Safety Stocks for a Grossly Oversold Market ### The Timing Isn't Great for PayPal Stock Timing is also a critical issue. PYPL is slated to release its fourth-quarter earnings results near the end of this month. If management doesn't deliver the goods, PayPal stock could finally suffer the pain that its peers have experienced. Bolstering the case for PayPal stock is the company's core industry. As I wrote a few years back, cash is "quickly going out of style." Most Americans use debit cards to make most of their purchases. Among millennials, almost no one ever uses cash. Thus, the drives towards convenience and digitalization support the bull case for PYPL stock. But one headwind facing PYPL is that many other tech companies recognize this trend. PayPal's competitors, including Square (NYSE:SQ) and Shopify (NYSE:SHOP), are entering the crowded online payment and merchandising space. But investors will want to see more than just a "vanilla" earnings beat by PYPL, and they'll be trying to determine whether PYPL can exploit new opportunities. ### India May Be a Catalyst for PYPL Stock Fortunately for shareholders, PYPL has an ace up its sleeve: India. With so much attention given to China, it's easy to forget that India is also an emerging-market powerhouse. Plus, its population of 1.34 billion isn't too far below China's headcount. Just recently, PYPL disclosed that its revenue from India had surged over 1200% year-over-year. According to rumors emerging from the company, management was deeply encouraged by the jump. As a result, it's decided to invest more money in India and expand its workforce there. The positive data really comes at an idea time for PayPal stock, which is currently rangebound. And there are multiple reasons why the company's positive trends in India should continue. For starters, India's GDP per capita is growing at an impressive rate. In fact, the country's GDP is increasing more rapidly than it did at the beginning of this decade. Along with this trend, India has experienced a rise in digital literacy, leading to an increase in e-commerce. The nation currently has 460 million internet users, making it the second-largest online market, trailing only China. According to Forrester Research, India's e-commerce sector may be worth $64 billion by 2021. Furthermore, India's advanced smartphone trends should improve PayPal's results there. India has integrated its 4G networks, bringing the country closer to developed-market standards. And the 5G rollout will eventually spread throughout India, creating more opportunities for PYPL. Finally, India is a much better environment for PYPL than China from a geopolitical perspective. That's because, while the Trump administration is in the midst of a trade war with China, it probably won't want to start a trade conflict with India. ### Not Enough Confidence in PayPal Stock On the surface, PYPL's India catalyst should provide investors with an easy buying opportunity. But context is everything. When it comes to PYPL stock, I believe that broader market concerns outweigh the company's positive attributes. The tech sector has suffered severe declines. Since PayPal is levered to both tech and consumer sentiment, I'm worried that PYPL could be meaningfully affected by a possible correction. Additionally, India has emerging-market risks as well as emerging-market opportunities . One of those risks is government oversight. The Indian government recently introduced legislation that makes it harder for Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT) to compete against local businesses. So far, regulation hasn't harmed PayPal's ambitions in India, but it's still a threat to PYPL stock. Don't get me wrong: I really like PayPal stock. Several times, I've championed its drive to make our economy more digital. But above all, I'm practical. The markets are obviously shaky, which signals that a sharp pullback could occur without warning. And PYPL stock could be badly hurt by such a pullback. As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Top Stock Picks From the Street's Best Analysts * 7 Tech Stocks Without China Exposure * 5 Strong-Buy Stocks That Crushed 2018 Compare Brokers The post PayPal Stock Could Be Hurt by Market Weakness Despite India Catalyst appeared first on InvestorPlace.
eCommerce Updates: eBay, JD, and Shopify ## Stock downgraded and price target lowered Morgan Stanley downgraded eBay (EBAY) stock to “equal-weight” from “overweight” last month, according to a note to investors cited by CNBC. At the same time, the firm cut its 12-month price target on eBay stock from $55 to $33. Before it upgraded eBay to “overweight” in April, Morgan Stanley had an “underweight” rating on the stock. In downgrading eBay, Morgan Stanley noted that the company’s gross merchandise value (or GMV) growth was slower than it expected in 2018 and that it expects the slowdown to continue in 2019. For ecommerce companies, GMV measures the total value of items sold over a given period. eBay’s GMV was $22.7 billion in the third quarter of 2018, up 5.0% year-over-year. But the GMV growth slowed from 8.0% in the third quarter of 2017. ## Emerging revenue opportunity in payments and advertising In addition to deteriorating GMV growth, Morgan Stanley also cited stiff competition in the ecommerce industry as another major challenge eBay faces. But the firm also noted that eBay has attractive emerging revenue opportunities in the payments and advertising markets. With more online shoppers beginning their product search on marketplaces, ecommerce platforms like eBay have taken on new significance as advertising spots for brands seeking to connect with consumers. ## eBay’s revenue rose 6.0% eBay generated revenue of $2.6 billion in the third quarter of 2018, representing an increase of 6.0% year-over-year, compared to revenue growth of 58% at Shopify (SHOP), 54% at Alibaba (BABA), and 29% at Amazon (AMZN). JD.com (JD) grew its revenue 25%. Continue to Next Part Browse this series on Market Realist: * Part 2 - JD Mall’s Restructuring Plans: What You Need to Know * Part 3 - How JD Will Fund Its $1.0 Billion Repurchase Program * Part 4 - Shopify’s Recent Fundraising: Must-Knows
Why Square Jumped ~14% Today ## Square In the fourth quarter last year, American financial technology firm Square’s (SQ) stock disappointed investors with a massive loss of 43.3%. Yesterday, the broader-market sell-off pressured the stock further, and it settled with about 8.4% losses. However, the stock surged today, erasing all of yesterday’s losses to ensure a solid start of 2019 for the company. Let’s see what’s drove today’s gains. ## Key factor for optimism Today, Square revealed that it had hired Amrita Ahuja as new CFO. According to Ahuja’s LinkedIn profile, she has been serving Activision Blizzard’s (ATVI) Blizzard Entertainment as its CFO for since March. She had served in different roles at Activision Blizzard since June 2010. In a press release, Square said, “Amrita will start in January and will report to CEO Jack Dorsey.” In the release, the company’s CEO Jack Dorsey noted that “In Amrita, we have found an amazing, multidimensional business leader.” and she “brings the ability to consider and balance opportunities across our entire business, and she will help strengthen our discipline as we invest, build, and scale. She is willing to challenge herself and others has the courage to take principled risks, and is passionate about our customers and our purpose.” In December, SQ refiled “its application for an industrial loan company charter, which it pulled in earlier this year to answer questions from regulators,” CNBC reported. The report added that the company plans to launch “Square Financial Services” to be able “to take federally-insured customer deposits.” This new hiring could have given rise to investors’ expectations that Square is inching closer to its plans to offer banking services, which could be one reason the stock rallied today, apart from a steep broader-market recovery. At 3:03 PM ET, Square stock was up 11.4% after posting the day’s high of $59.64, up nearly 14% from its previous session’s closing price. The stocks of peers (IWP) Paypal Holdings (PYPL), Shopify (SHOP), eBay (EBAY), and Amazon (AMZN) were also up 5.0%, 6.2%, 2.2%, and 5.2%, respectively.