267.15 -0.04 (-0.01%)
After hours: 4:19PM EDT
|Bid||267.15 x 800|
|Ask||267.40 x 900|
|Day's Range||264.75 - 272.89|
|52 Week Range||117.64 - 279.48|
|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|
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 email@example.com 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.
Shopify stock fell as some analysts turned bearish on the e-commerce platform provider. But Shopify stock bounced back as the Nasdaq composite rose during trading on Tuesday's markets.
Social Media Updates: Facebook, Twitter, Snap, and Pinterest(Continued from Prior Part)Exposure to over 800,000 potential advertisersSnap (SNAP) and Shopify (SHOP) recently struck a digital marketing deal, which could be a major boon for Snap’s
Shopify's stock is trading at around 12.6 times EV/Sales on fiscal 2020 revenue estimates, which Essex said is mostly in-line with U.S. based SaaS high-growth companies. Shares have also gained 81 percent since the start of 2019 versus the high-growth SaaS group at 47 percent. The problem for Shopify is the magnitude of outperformance is "unwarranted" and the company's status as being a pure SaaS company may not be accurate.
Shopify (NYSE:SHOP) stock has been red hot in 2019. The e-commerce solutions provider 's two earnings reports have been strong this year. Both reports featured revenue growth of about 50% and surprisingly high profits for such a rapidly growing company. Investors have cheered those results. In 2019, Shopify stock is up nearly 80%.Source: Shopify via FlickrBut that is nothing new for the Canadian technology giant. Over the past several years, Shopify has grown its merchant base and revenues by leaps and bounds, while its margins have consistently moved higher, and its big losses have turned into sizable profits. As a result, over the past three years, SHOP stock is up a whopping 900%. * 6 Trade War Stocks With a Lot of Risk Retailers are pivoting with increasing momentum to a direct, decentralized business model, and SHOP is the heart of this new model. This pivot is still in its early stages. As it continues to play out with even greater momentum over the next several years, Shopify's merchant and revenue base will continue to expand dramatically, while its profits will move significantly higher. All in all, that should power Shopify stock to healthy long-term gains.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHaving said that, all stocks - even long term winners - have their run-ins with volatility. Shopify stock hasn't experienced much volatility all year long. It's also up quite a bit, and trading at a mega-rich valuation. Consequently, it seems likely that this long term winner is due for some turbulence in the near-term.Net net, this isn't the time to buy SHOP stock if you're a trader. But if you're an investor, don't stress about the near-term weakness of Shopify stock. Embrace it, and use it as an opportunity to accumulate SHOP stock for the long run. Shopify Stock Is a Long-Term WinnerThe long-term bull thesis on Shopify stock is quite simple, and it's equally compelling.Retailers' new business model can be divided into two components: direct and decentralized.On the direct front, the internet has directly connected brands/sellers to customers/buyers, removing the need for a middle man. Consequently, brands/sellers are now selling directly to customers/buyers via direct channels, like online store fronts, social media apps, digital marketplaces, etc.Meanwhile, decentralization refers to the proliferation of the internet and selling tools which has democratized the selling process, so that any seller can sell any item to any buyer through any channel. That change increases the volume of supply in the market, reduces overall prices, increases buyers' convenience, and allows new sellers to make money. In other words, it produces optimal outcomes across the board, so direct retailers are becoming more decentralized than ever before.SHOP is the heart of this direct decentralized retail model. In order for this model to work, smaller sellers have to be able to compete with larger sellers. Shopify gives smaller sellers the tools to do just that.More than that, these tools are working. Over the past several years, not only has SHOP's gross merchandise value growth been huge, but its GMV has also significantly outpaced its merchant growth, meaning its GMV per merchant is growing, too. That means sellers are increasingly becoming more and more successful because of Shopify's tools.Thus far, SHOP and Shopify stock are only scratching the surface of their long-term potential. In 2018, SHOP's GMV was about $40 billion. Last year. the value of global e-retail sales was just south of $3 trillion. Thus, Shopify's GMV represented just over 1% of total e-retail sales. That's tiny. At peak levels, its share of the global market could march towards 5%-10%, meaning that its days of 20%-plus revenue growth are just beginning.Overall, then, Shopify is in the first inning of a long-term, non-cyclical growth narrative that will ultimately power SHOP stock significantly higher. Shopify Stock Is Overdue for Near-Term TurbulenceEvery stock - even the strongest ones - has run-ins with volatility. The problem with SHOP stock is that it is long overdue for its run-in with volatility.The innate nature of high-flying growth stocks like SHOP is that they are volatile. They go up a great deal, and they go down a great deal. Shopify stock is historically no exception.In 2018, Shopify stock had four declines of 20%-plus. In 2017, SHOP stock had four 10%-plus selloffs. But, in 2019, the stock hasn't had a single 20% correction yet. Nor has it had a single 10% correction. Instead, in 2019, the biggest correction in the stock has been 6%.Thus, history says that SHOP stock is due for some turbulence soon, and that such turbulence will likely chop off 10% or more from the stock.Further, the stock is up nearly 80% year-to-date, has run way above its moving averages, is in overbought territory according to the Relative Strength Index, and is trading near an all-time high. SHOP's competition is also ramping, and its growth could slow against the backdrop of elevated competition. If its growth does slow in the back half of the year, then SHOP stock could be due for a sizable correction.All in all, while Shopify stock will be a big winner in the long run, the stock needs to take a breather now. The Bottom Line on SHOP StockShopify stock is one of the market's best long-term investments. But, the stock has come very far, very fast in 2019, and needs to take a breather before resuming its longer term march higher.As of this writing, Luke Lango was long SHOP. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 6 Trade War Stocks With a Lot of Risk * 7 Bond ETFs to Buy * 10 Stocks That Could Squeeze Short Sellers, Including CGC Compare Brokers The post Shopify Stock Is a Long-Term Winner That's Due for Near-Term Turbulence appeared first on InvestorPlace.
Morgan Stanley's Brian Essex cut Shopify to underweight from equal weight on Tuesday, a day after Guggenheim analyst Ken Wong downgraded shares to neutral from buy and stated the valuation was stretched following a recent stock-price advance. Guggenheim eliminated its price target, as the stock has soared more than 80% in 2019, closer to fair value. Essex raised his price target to $209 from $173, about 17% off its Monday close.
I suppose every analyst has that one company that they can't seem to get right. For me, that's Shopify (NYSE:SHOP). I haven't found Shopify stock convincing because I don't really care for its financial performance. Nevertheless, many investors could care less about what I think, and with SHOP, they're absolutely right.Source: Shopify via FlickrLast year, in May, I declared that SHOP stock was carrying a "ridiculous premium." Sure, the company was growing, but the rate wasn't really impressive considering the small revenue base. Plus, Shopify is a consistent money-loser, with net-income losses widening each year.As early-bird speculators in Amazon (NASDAQ:AMZN) and Facebook (NASDAQ:FB) demonstrated, sometimes all you need is a good narrative. Then again, these two names started to justify their wild valuations. I can't say the same for Shopify stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, a quick look at the charts confirms the opportunity cost of my bearishness. Yes, SHOP stock did generally trade lower in the second half of 2018. However, this year, shares have launched into low-earth orbit, nearly doubling in price since the January opener. Should I now change my tune on the e-commerce marketplace? * 7 Strong Buy Stocks That Tick All the Boxes Admittedly, I understand the speculative appeal. Anyone with functioning eyes can see that we're rapidly headed toward a fully digitalized ecosystem. From the average person's perspective, the most conspicuous change is in retail.Today, we no longer have to wait in line at Walmart (NYSE:WMT), Target (NYSE:TGT) or Best Buy (NYSE:BBY) to score the latest gadget or gizmo. Instead, we can shop online through Amazon and have the products delivered to us relatively cheaply.In addition, digitalization has made it possible for the small fry to market their products directly to the public. That's the appeal and pitfall of SHOP stock. Shopify Stock Has a Scalability ProblemTheoretically, Shopify stock should be one of the most scalable investments ever. The underlying company provides an e-commerce platform for merchants. As individual merchants become successful, the rising tide should lift all boats.Shopify can invest more funds into its platform, addressing the needs of both its small and large clients. And it shouldn't take that much effort and resources to scale up their business: ultimately, we're talking about an online platform, not a physical one.Unfortunately, theory doesn't match reality for SHOP stock. Certainly, Shopify enjoys the presence of many top brands. However, the overwhelming majority of merchants are mom-and-pop shops that no one has heard of. Worse yet, these names are such small players that most will likely fail very quickly.Critics have long argued that you need to take the subscription growth in Shopify stock with a grain of salt. The online marketplace is flooded with low-quality merchants, attracting the attention of short-sellers. While this bearishness hasn't played out in the markets, the point remains: Shopify attracts losing businesses.This is the reason why management is reluctant to release their churn rate. If they did, we could see a disturbing volume of failures.By the way, the churn rate is another oft-repeated criticism. Perhaps now, people are sick and tired of hearing about it. Nevertheless, this metric is incredibly critical to put the company's "success" into context.For instance, in the last Q1 earnings report for Shopify stock, the company reported a 50% year-over-year bump in revenue. Great. But most of the company's revenue comes from merchant solutions or payments processing. In other words, they're selling hopes and dreams to businesses that statistically don't have a chance in the warm place.You see why churn is so important? * 10 'Buy-and-Hold' Stocks to Own Forever Easy Call on SHOP StockHad Shopify stock gone rangebound this year, I'd have some trouble discussing this name. Although some of the core fundamentals are incredibly risky, the idea of this firm admittedly attracts the markets. At the end of the day, that's really all that matters.However, with shares having gone bonkers in 2019, this is an easy call. I'm not even going to bother with weasely statements to hedge my reputation. You should simply sell or avoid SHOP stock.Shopify represents a business that is supposed to scale up. Instead, they're treading water with the same low-profile, low-quality merchants they've had since day one. This company reminds me of a multi-level marketer deliberately seeking out dumb people to victimize. The problem with this strategy is that you eventually run out of dumb people.Shopify stock appears brilliantly suited for the 21st-century economy. But unless they shore up the overall quality of merchants, I can't see them moving far. At the very least, they don't deserve this crazy valuation.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 * 7 Strong Buy Stocks That Tick All the Boxes * 7 Stocks to Buy From the T. Rowe Price Health Sciences Fund * 5 Tech ETFs to Plug In to Big Profits Compare Brokers The post Now Would Be a Good Time to Sell Shopify Stock appeared first on InvestorPlace.
Editor's note: This story was previously published in February 2019. It has since been updated and republished.Trying to "beat the market" is a tough game on a day-to-day basis. Financial markets are volatile. They'll swing higher one day and then fall the next day. Sometimes, we don't even know why they move the way they do. They just move. And, because it's nearly impossible to explain every day-to-day move on Wall Street, it's equally impossible for even the sharpest minds to predict day-to-day moves in stocks with great accuracy. It makes it easier to figure out which stocks to buy.Thus, trying to "beat the market" on a day-to-day basis is an uphill battle. But, if you zoom out and take a long-term approach to investing, you turn that uphill battle into an even playing field. Longer-term trends in stocks are often easier to predict because they almost always track fundamentals and narratives, and fundamentals and narratives are tangible enough that investors can -- with practice and discipline -- predict them with great accuracy.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dividend Stocks to Buy as the Trade War Reignites As such, successful investors often tend to take the Warren Buffet approach and buy stocks of companies that have healthy long-term growth prospects, under the idea that healthy long-term growth will translate into a substantially higher stock price over time.I have a special name for the cream-of-the-crop stocks in the long-term winners basket: forever stocks. Forever stocks are the classification of stocks that are not just long-term winners, but are also aligned with powerful and long-running secular growth trends, and have proven leadership within that trend. Thus, forever stocks project with high certainty to be long-term winners for a lot longer. Theoretically, they project to be winners "forever."These forever stocks are the best stocks to buy and hold for long-term investors. They will be highly volatile in the near term. But, such volatility will amount to nothing more than noise in the big picture. In that big picture, forever stocks will only head higher.With that mind, let's take a look at seven forever stocks to consider for the long haul.Source: Shutterstock Facebook (FB)Secular Trend: Persistent internet addictionBig Idea: The big idea behind the forever bull thesis in Facebook (NASDAQ:FB) starts with the fact that consumers are addicted to the internet. There have been multiple calls for this addiction to break over the past several years. It hasn't. Instead, internet usage has gone up because the internet provides the easiest, most convenient and cheapest way to perform a great number of tasks.Consumers spend most of their internet time on the digital properties that Facebook owns. That means that an addiction to the internet and an addiction to Facebook's digital properties run parallel to one another. This will remain true for the foreseeable future. As such, the number of users on Facebook's properties and the volume of ad dollars flowing through those properties will only go up over time. As they do, Facebook's revenues and profits will steadily rise, and so will FB stock.Source: Shopify via Flickr Shopify (SHOP)Secular Trend: Democratization of ecommerce in the coordinated economyBig Idea: The big idea behind the forever bull thesis in Shopify (NYSE:SHOP) starts with the fact that the world is becoming increasingly democratized and decentralized. This concept is very simple. Companies far and wide are leveraging technology, which allows for unprecedented connectivity, to democratize supply and distribution processes globally. These are the kinds of stocks fo buy for the 21st century.Think Uber, which democratized driving services so that anyone with a car could do it, or Airbnb, which democratized accommodation services so that anyone with an extra room could do it. I like to call this movement the coordinated economy since beyond democratizing services, these companies are also coordinating these services to create optimal outcomes on both the supply and demand side of the equation. * 7 Cloud Stocks to Buy on Overcast Days Shopify is doing this exact same thing in the commerce world. The company is democratizing selling services so that anyone with a product can sell it. They are also coordinating such services by creating a connected web of independent buyers and sellers.In so doing, Shopify is creating the building blocks for a new era of democratized commerce where we don't buy everything from Amazon (NASDAQ:AMZN). As this democratization process plays out over the next several years (and it most certainly will, given that Amazon can't control 50% of the U.S. ecommerce market forever), Shopify's merchant volume, revenues and profits will rise by leaps and bounds. As they do, SHOP stock will rise, too.Source: Web Summit Via Flickr Twilio (TWLO)Secular Trend: Growing demand for cloud communication servicesBig Idea: The big idea behind the forever bull thesis in Twilio (NASDAQ:TWLO) is that the world is becomingly increasingly connected, and as it does, the desire for cloud-based communication services will go from "want" to "need."This market that involves these services is broadly defined as the Communication Platforms-as-a-Service (CPaaS) market, and it consists of companies integrating real-time communication services into their operations. Perhaps the most tangible example of this is when Uber or Lyft sends you messages to communicate that your ride has arrived.Nuanced communication services like this will be increasingly integrated at greater scale over the next several years across various industries. Remember, no matter the industry, one theme is constant: consumers and companies alike are becoming more connected than ever. Twilio has emerged as the unchallenged leader in this space.The customer base is growing by over 30%. Revenues are growing by nearly 70%. The retention rate is 95% and up. In other words, everything is going right for this company, and it will continue to go right as the CPaaS market goes from niche to mainstream over the next several years. Source: Shutterstock The Trade Desk (TTD)Secular Trend: Pivot toward programmatic advertisingBig Idea: The big idea behind the forever bull thesis in The Trade Desk (NASDAQ:TTD) starts with the fact that technology is rapidly automating multiple jobs and processes across the enterprise ecosystem. This includes the process of buying and selling ads. Before, the ad transaction process was laborious, lengthy and included several human parties. Today, though, enterprises can now buy ads instantaneously and without friction or the high costs using computers. * 7 Dangerous Dividend Stocks to Stay Far Away From This new method of using AI and machines to buy and sell ads is called programmatic advertising. It's the future of advertising. Eventually, given the low-friction and low-cost advantages of programmatic advertising, all $1 trillion worth of ad spend globally will be transacted programmatically.At the forefront of this market is Trade Desk, a company which has distinguished itself as the programmatic advertising leader. As such, as the programmatic advertising method goes global over the next several years, Trade Desk will remain a huge grower and TTD stock will head higher. Source: Shutterstock Amazon (AMZN)Secular Trend: Nearly everythingBig Idea: The big idea behind the forever bull thesis in Amazon is that this company is at the forefront of nearly every one of tomorrow's most important markets. E-commerce? Amazon already dominates there. Cloud? Amazon already dominates there, too. Offline retail? Amazon is rapidly expanding its presence.Automation? Amazon is already automating its warehouses, and just made a big investment into self-driving car company Aurora. AI? Amazon dominates the voice assistant market. Pharma? Amazon has all the licenses it needs to launch a nation-wide e-pharmacy business. Digital advertising? Amazon's digital ad business is the fastest growing among major players in the space. Streaming? Amazon is No. 2 in this market behind Netflix (NASDAQ:NFLX)In other words, Amazon has its fingertips everywhere it matters. Inevitably, one or many of these growth initiatives will turn into a multi-billion dollar business (if it isn't already). A few big breakthroughs in automation, pharma or AI will help offset slowing growth in e-commerce and keep Amazon a big growth business for a lot longer. That will push AMZN stock way higher in the long run.Source: Shutterstock Forever Stocks to Buy: Adobe (ADBE)Secular Trend: Shift towards a visual and experience economyBig Idea: The big idea behind the forever bull thesis in Adobe (NASDAQ:ADBE) starts with the idea that the world is becoming increasingly visual-centric. You can thank Instagram, Snapchat and YouTube for bringing this out recently, but the desire has always been there. The saying "a picture paints a thousand words" has been around for a long time. Now, that saying is turning into action as consumers globally are becoming increasingly obsessed with visual everything. * 10 Great Stocks to Buy on Dips When it comes to visual everything, there's one company in the world that stands out above the rest in terms of creating visual everything content: Adobe. Adobe has developed a reputation as being a second-to-none provider of visual everything solutions for creative professionals.Now, the company is leveraging that experience to create visual everything cloud solutions. These cloud solutions will be met with increasing demand as enterprises increasingly seek visual everything solutions to connect with consumers. As such, Adobe will benefit from a continued visual cloud demand surge over the next several years, and that will help keep ADBE stock on a winning trajectory.Source: Via Square Forever Stocks to Buy: Square (SQ)Secular Trend: Rise in card and digital paymentsBig Idea: The big idea behind the forever bull thesis in Square (NYSE:SQ) starts with the fact that cash is history. A few years ago, your average consumer almost always carried a wallet or purse that had at least some cash. Today, that's no longer true.A majority of young, 30-and-under consumers I come across don't carry cash. Instead, they have their phone and their payment card(s), and intend to pay for things exclusively through one of those items.Retail shops have had to adjust to this cashless revolution, and Square has helped them. Square provides machines that facilitate cashless transactions. First, they simply helped facilitate brick-and-mortar cashless transactions. Now, they are helping facilitate ecommerce transactions, too.In other words, everywhere the consumer is, Square is there, too, helping them facilitate a cashless transaction. This is an extremely valuable position to be in for the foreseeable future, as cash truly becomes a relic in the modern economy. As it does, Square's payment volume will surge higher, and SQ stock will stay on an uptrend.As of this writing, Luke Lango was long FB, SHOP, TWLO, TTD, AMZN, NFLX, ADBE and SQ. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Fundamentally Sound Dividend Stocks to Buy * 5 Reasons Reeling FAANG Stocks Won't Deliver Big Returns * 3 Reasons Canopy Growth Could Burn You Compare Brokers The post 7 Forever Stocks to Buy for Long-Term Gains appeared first on InvestorPlace.
Guggenheim’s Ken Wong downgraded Shopify and removed his price target given the stock’s big run-up so far this year.
Shares of Shopify Inc (NYSE: SHOP ) have gained more than 45 percent since the start of 2019 and the stock's valuation implies limited upside potential ahead, according to Guggenheim Partners. The Analyst ...
Jim Cramer reveals how some CEOs are willing to take the tariff pain because they're fed up with China's trade practices.