328.86 +1.84 (0.56%)
After hours: 7:36PM EDT
|Bid||328.00 x 800|
|Ask||328.49 x 800|
|Day's Range||302.40 - 327.69|
|52 Week Range||117.64 - 327.69|
|Beta (3Y Monthly)||1.52|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 30, 2018 - May 4, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||261.83|
Dow Jones futures: The stock market rally faces one joint obstacle — record highs and the Trump-Xi meeting. Oracle jumped late on strong earnings after software stocks led Wednesday's gains.
The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive […]
Square stock is down roughly 3.5% over the last three months as investors decide what's next for the once high-flying financial tech giant.
Shopify (NYSE: SHOP ) has launched an Amazon-like fulfillment network in the United States, promising faster, lower-cost shipping merchants using its e-commerce platform. The Canadian firm announced the ...
Today, Shopify Inc. (SHOP) (SHOP.TO), the leading multi-channel commerce platform, unveiled the latest in commerce technology at Shopify Unite, the annual conference that brings together the company’s global partner and developer community. “Shopify’s real power comes from the variety and strength of our ecosystem,” said Shopify CEO Tobi Lutke. Shopify’s innovations include a newly updated Shopify Plus platform for enterprise brands, more global capabilities, and for the first time, Shopify is expanding its offering with a fulfillment network that will allow merchants of all sizes to deliver their products fast and at a low cost.
Shopify stock hit an all-time high after the e-commerce firm said it plans to build a U.S. distribution network to ship and store products for online retailers, taking on giant Amazon.com.
It was Fed day on Wednesday, with the Federal Reserve saying that it is not raising rates but that it will act appropriately if the data warrants it. Essentially, it is willing to be accommodative, which is reassuring to investors, provided Fed Chair Powell doesn't say something hawkish in his press release. Let's look at some top stock trades in light of today's move. Top Stock Trades for Tomorrow 1: Uber Click to EnlargeShares of Uber (NYSE:UBER) have been trading better since the IPO hoopla, putting in a series of higher lows over the past few weeks. Is the stock finally ready to breakout? * 5 Strong Buy Biotech Stocks for the Second Half It might be. Uber poked its head above the $45 IPO price, but retreated shortly after. Over this mark and investors will surely be looking for upside. However, they'll want to see a run higher over $45.70, where it has continually been met with sellers throughout this month.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut you know what they say: the more times a level is tested, the more likely it is to give way. With a series of higher lows pressuring UBER higher, I'm looking for this one to eventually breakout over $45. Top Stock Trades for Tomorrow 2: Jabil Click to EnlargeShares of Jabil (NYSE:JBL) are slowly but surely grinding higher on Wednesday after better-than-expected earnings results. After finding the 200-week moving average as support a few weeks ago, shares quickly vaulted above the 20-week and 50-week moving averages as well.It sets up a big test of $31, which has been range resistance for two years now. Should it act as resistance again, a pullback will likely get underway. If it gives way though, it could ignite a potent rally over this mark.Watch $31 to $31.40. Over this area and JBL stock could fly. Top Stock Trades for Tomorrow 3: Adobe Systems Click to EnlargeAdobe Systems (NASDAQ:ADBE) is rallying after better-than-expected earnings and despite worse-than-expected guidance for next quarter. That's surprising, given most stocks trade on guidance rather than the past quarterly results.But it doesn't matter; price action does.Wednesday's rally vaults ADBE over the key $285 level. As long as it can maintain this price, bulls can stay long. Over $292 will land Adobe at new highs and could spark a rally to $300.Below $285 puts the 50-day back in play. Below that puts its June lows on the table. Top Stock Trades for Tomorrow 4: Shopify Click to EnlargeDoes this stock ever stop? While we've nailed a few good trades in Shopify (NASDAQ:SHOP) here on InvestorPlace, I admit that I missed my opportunity to buy this name as a long-term hold. But my oh my, what a breathtaking rally this has been. * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer That said, don't make it more complicated than it needs to be. Simply put, this one is bouncing higher off its 20-day moving average, rallying to channel resistance (blue line) and consolidating its gains until the 20-day catches up again. Below the 20-day and SHOP may need to reset. Otherwise, keep it simple.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Value Stocks to Buy for the Second Half * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer * 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post 5 Top Stock Trades for Thursday: UBER, JBL, ADBE, SHOP appeared first on InvestorPlace.
(Bloomberg) -- Shopify Inc. plans to spend $1 billion to set up a network of fulfillment centers in the U.S. to help merchants using its e-commerce platform deliver products more quickly and cheaply, much the way Amazon.com Inc. does.“A large number of orders are lost in the final stages due to complex shipping costs,” Craig Miller, Shopify’s chief product officer, said at the company’s annual developer conference in Toronto. The service will use machine learning to predict demand and suggest closest fulfillment centers to merchants.The Ottawa-based company unveiled the plan, along with new features such as video and 3D modeling for products, the ability to edit orders and a better user interface. It also added 11 new language capabilities and rolled out a multi-currency payments system to all merchants. It’s planning a new point of sale system for later this year.Its shares jumped 5.1% to a record $319.83 at 2:38 p.m. in New York. It’s the top-performing stock in Canada this year after more than doubling. Shopify has also outperformed any stock in the S&P 500 over that time.Shopify, which processes millions of individual sales by hundreds of thousands of merchants every year, is joining the delivery race. Amazon took the lead in e-commerce by building its own delivery infrastructure with warehouses close to big cities across the U.S.As big retailers like Walmart Inc. and Target Corp. jumped into the game, Amazon responded with a next-day delivery pledge of millions of products.Shopify could potentially pool shipments from different online stores together, making shipping cheaper and more efficient. Storing products from different merchants in centralized warehouses would also bring down costs for sellers and buyers alike, and net Shopify another revenue stream.That could help the company mount a defense against Amazon, which lowers prices and encourages merchants to use its own warehouses and shipping tools.Shares in the online platform, which celebrity Kylie Jenner uses to sell cosmetics, have been rallying after reporting strong first quarter earnings, forecasts for second-quarter revenue that was above expectations and its first annual revenue above $1 billion in 2018.(Updates share price in fourth paragraph, background)\--With assistance from Gerrit De Vynck.To contact the reporters on this story: Simran Jagdev in Toronto at firstname.lastname@example.org;Paula Sambo in Toronto at email@example.comTo contact the editors responsible for this story: Jacqueline Thorpe at firstname.lastname@example.org;Jillian Ward at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shopify Inc. shares are up 5% in midday trading Wednesday after the company announced a series of new products and features at its annual Shopfiy Unite partner conference. The company said that its Shopify Fulfillment Network, which lets merchants access fulfillment centers and use machine learning to time deliveries, was available for early access. The company also debuted the next generation of its in-store point-of-sale system and payments software. Shopify shares have climbed 131% so far this year, as the S&P 500 has gained 16%.
were up nearly 5% Wednesday as the e-commerce technology company holds its annual Shopify Unite investor day in Toronto. The company announced a series of new products and features, including the use of machine learning to time deliveries from its Shopify Fulfillment Network. Shopify also debuted the next generation of its in-store point-of-sale system at the event.
Shopify Inc. , the leading multi-channel commerce platform, is hosting an Investor Day in Toronto, Canada today, Wednesday, June 19, 2019 at its annual partner conference, Shopify Unite, to provide investors and analysts with an overview of the company's performance and an update on its product roadmap and long-term strategy.
Facebook (NASDAQ:FB) stock has bounced around over the past few years. In 2017, FB stock rallied as the consensus thesis was that FB was transforming into a permanently dominant player in the continuous-growth digital-ad industry.Source: Shutterstock But in 2018 that thesis was called into question amid a flurry of data-privacy scandals, which sparked harsh consumer and regulator backlash. FB stock dropped in response to the scandals. FB has rebounded in 2019, as it has moved past those data-privacy concerns and maintained its dominant position in the digital-ad world. * 5 Stocks to Buy for $20 or Less Amid this wild roller-coaster ride, it is natural for investors to ask: what's next? Will Facebook stock stay in rally mode? Or will it retreat again?InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe answer is clear. Facebook stock will stay in rally mode. But the rationale for that conclusion is not clear. The reason that FB stock will stay in rally mode has very little to do with its advertising business, which has been the heartbeat of Facebook for the past several years. Instead, FB stock's next leg higher will be driven by the company's big push into commerce.The thesis is simple. Around 2.7 billion people interact with Facebook's ecosystem everyday. Right now, Facebook monetizes those people through ads. But, when you have 2.7 billion people interacting with each other and brands in your ecosystem every month, it is very easy to also throw in a commerce component, and turn those 2.7 billion pairs of eyeballs into 2.7 billion shoppers. By doing that, Facebook can dramatically increase its addressable market and expand its long-term opportunity.The improvement in FB's results that will be triggered by this commerce push is not priced into FB stock today, giving investors a golden opportunity to buy into a high-growth stock at a very reasonable price.Investors should buy FB stock because FB is going way higher in the long-run. Facebook's Push Into Commerce Is InevitableAs a backdrop, it's important to understand what's going on with Facebook's ad business. FB is a giant in the global-digital-ad world. That's naturally what happens when you have 2.7 billion people in your ecosystem; you attract ad dollars seeking the attention of those 2.7 billion pairs of eyeballs.That business is doing just fine. It's growing at a 20%-plus pace. But its growth is slowing. That isn't Facebook's fault. The whole digital-ad market is slowing. We are talking about a market that's going to go from 20%-plus growth in 2018 to single digit growth by 2023, mostly because more than 50% of ad dollars have already migrated to the digital channel.In other words, the runway for growth in the digital-ad industry is slowing, so digital ad growth rates across the whole industry, including Facebook, are falling. FB is looking for a way to combat this slowing growth trend.Fortunately, it's stumbled upon one very promising opportunity: commerce. Facebook's suite of apps is the online version of the world's "town square," s it's a natural place for commerce to take place. Consumers are interacting with each other and with brands very often through Facebook's platforms. Consumers are also learning about brands, products, services, places, experiences, etc. Layering commerce on top of those already naturally occurring dynamics is an easy thing to do.Consequently, FB is pivoting full-force into commerce. It's launched Marketplace,an e-commerce platform. FB has also partnered with Shopify (NYSE:SHOP), and it's looking into building a native currency. Inevitably, all these growth initiatives will one day enable FB to become an e-commerce hub. FB's Commerce Business Will Be HugeFacebook's push into the commerce world could be the beginning of something huge. Facebook's e-commerce business could eventually be nearly as big as its digital-ad business.About $280 billion were spent on digital ads last year, and that's projected to rise to $500 billion-plus in 2023. On the commerce side of the ledger, $2.8 trillion were spent on e-commerce last year, and, by 2021, that's expected to jump to nearly $5 trillion. In other words, the e-commerce-addressable market is about ten times the size of the digital-ad-addressable market.With 2.7 billion people in its ecosystem, FB doesn't need to turn all of its users into shoppers in order to have a huge commerce business. Let's say only 1 billion users eventually utilize Facebook for e-commerce in one form or another. Let's also say that the average annual spending on Facebook for those 1 billion users is about $500, or about 20% of total online per capita spending. That would translate into $500 billion in gross merchandise value. Assuming Facebook takes a 5% cut, that's $25 billion of e-commerce revenue for FB.The company's digital-ad business generated revenue of $55 billion last year.Thus, through e-commerce alone, Facebook has an opportunity to drive nearly 50% revenue growth over the next several years. That growth will be on top of the double-digit-percentage-annualized growth of the company's digital ad business. All of its revenue will carry high margins.Facebook's revenue and profit look poised to continue growing rapidly for the foreseeable future. Trading at just 20-times its forward earnings, FB stock is dirt-cheap, considering its robust profit growth potential at this point. The Bottom Line on FB StockFacebook stock has been on a wild roller coaster ride over the past several years. The next move in this stock will be another leg higher, powered by the company's big push into commerce. As that push unlocks tremendous long- term value, investors will buy into the recharged growth outlook, and FB stock will move higher.As of this writing, Luke Lango was long FB and SHOP. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post Buy Facebook Stock Because Its Commerce Future Is Bright appeared first on InvestorPlace.
Snap (SNAP) has partnered with Shopify (SHOP) to allow certain accounts to set up retail stores in its Snapchat app. The Shopify-powered Snapchat stores feature has initially rolled out to certain Snapchat influencer accounts, but there are plans to roll it out to creators, publishers, and brands later this year.
Within the next few weeks, users of Shopify Inc (NYSE: SHOP)'s digital platform will be able to order cannabis through an integration with ParcelPal Technology Inc (OTC: PTNYF), Benzinga has learned. ParecelPal is an on-demand delivery service that offers merchandise from retailers, restaurants, medical marijuana dispensaries and liquor stores in Vancouver, Calgary and Saskatchewan. The company also said it will be expanding to the rest of Canada soon.
If investors are looking to shop for market leadership, Shopify (NYSE:SHOP) definitely qualifies. But buying SHOP stock at today's prices also carries with it the burden of increased risk both off and on the price chart. Let me explain.Source: Shopify via FlickrI've been bullish on more than one occasion over the past couple years in e-Commerce business platform Shopify. Most recently, that optimism was immediately in front of notorious short-seller Citron Research promoting shares as having nowhere to go but down after a rapid run.It almost goes without saying our bullish viewpoint looked silly on the heels of that. Citron warned that SHOP stock was set to trade down $100 over the next 12 months. But as this clash of opinions on Shopify shares was during the first three trading days of the second quarter, Citron's bearish gain of roughly $16 in paper profits was also fleeting.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shopify Stock Took OffAt the same time, our discussed slightly-above-the-market entry price in SHOP was triggered only a handful of days later. And the stock has literally never looked back. In just over two months, Shopify shares have rallied from below $210 to north of $310 as of Wednesday's close.The $100 run-up and return of 47% versus the S&P 500's gain of less than 1% over the period not only shredded Citron's "nowhere but down" thesis, but also demonstrates SHOP stock's obvious market leadership. It also raises the specter of shares having a more credible 'nowhere to go but down' scenario play out. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 Bottom line, despite Shopify shares still being positioned as "best in class" -- a view shared by Citron, mind you -- "a real" rapid run in SHOP coupled with competition from Square (NYSE:SQ), Facebook (NASDAQ:FB) and possibly Microsoft (NASDAQ:MSFT), does make Citron's prior risky valuation concerns more sound.Some SHOP stock bulls may say this is a baseless opinion. I understand. Well-intentioned warnings of nosebleed P/E's or worries of other traditional metrics which appear priced for perfection are still far from perfect indicators for a growth company like Shopify. Still, a baseless SHOP stock on the price chart should have ironclad agreement among bulls (and bears), and that's a worry in the near-term. SHOP Stock Weekly ChartLooking at SHOP stock's weekly chart, my takeaway is Citron may finally get its $100 drop this year. With this rally, Shopify shares are lacking any kind of meaningful weekly basing patterns near current levels. The stock has also largely fulfilled any type of upside price targets from previous base breakouts.A correction of this magnitude would simply put shares into a testing position of Shopify's 50% retracement level. That's just above the short, flat base which had this strategist upbeat on shares back in early April.Along with this formidable technical support, the move would work out to a correction of roughly 32%. Since that's just over the classic 30% level generally accepted as constructive behavior in growth stocks, I'm confident a nice buying opportunity in SHOP stock would also be at hand.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post Wait for the Drop to Buy Shopify Stock appeared first on InvestorPlace.
While Square (NYSE:SQ) stock has gained a respectable 12.6% in the past year, that performance pales in comparison to the previous 12-month periods, when SQ stock nearly doubled each year.Source: Via SquareNot only that, the shares have also been disappointing when looking at other companies in the space. Consider that the annual return for Shopify (NYSE:SHOP) is a sizzling 91% while PayPal (NASDAQ:PYPL) stock has risen 37% and Visa (NYSE:V) is up 28%.Now the payments industry holds tremendous opportunity. One estimate is that the size is a whopping $110 trillion on a global basis. No doubt, technologies like cloud computing, mobile and AI (artificial intelligence) will continue to be disruptive forces.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYet despite all this, I still think there are some nagging risks with Square stock. Let's take a look: SQ Stock: GrowthSQ continues to grow at a fast pace. In the latest quarter, net revenues jumped by 43% and adjusted revenues spiked by 59%. The company also increased its full-year guidance.Yet there are some potential issues with the growth story. For example, gross payment volume increased by only about 27% to $22.6 billion. The Street, on the other hand, was looking for $22.8 billion.As well, the U.S. economy is showing some signs of weakness, as seen with a drop-off in job gains and sluggishness with retail sales. Businesses also appear to be pulling back on making investments because of the uncertainty regarding trade, especially with China. * 7 Stocks to Buy As They Hit 52-Week Lows If there is a recession or a serious slowdown, SQ could take big heat. The reason is that a big chunk of the company's revenue come from small businesses. And yes, they generally are disproportionately effected during economic hard times.According to Square's 10-K filing: "Small businesses frequently have limited budgets and limited access to capital, and they may choose to allocate their spending to items other than our financial or marketing services, especially in times of economic uncertainty or in recessions. In addition, if more of our sellers cease to operate, this may have an adverse impact not only on the growth of our payments services but also on our transaction and advance loss rates, and the success of our other services." Square Stock: ValuationEven though SQ stock is 30% off its 52-week high -- which was tipped in September -- the valuation is still far from cheap. Note that the forward price-to-earnings ratio is roughly 63x and the shares trade at about 8.3x sales. * 7 Dark Horse Stocks Winning the Race in 2019 Now a premium is deserved for a company with Square's strong platform, brand and customer base. But then again, if the growth rate starts to falter, there could easily be more downside. We already saw evidence of this in the latest earnings report. SQ Stock: Managerial BandwidthA key part of Square's strategy has been to add more and more services on its platform. This has not only provided more convenience for customers but has expanded the market opportunity. Note that this strategy has been critical in keeping up the overall growth rate as payments volumes have been trailing off.But there is a risk to this strategy -- that is, it increases the complexity of the organization. The services span diverse categories like invoices, deposits, inventory, appointments, website hosting, marketing, employee management, business loans and so on. All of these are in highly competitive markets.Besides, CEO Jack Dorsey is essentially a part-time CEO, as he also heads up Twitter (NYSE:TWTR). So it will certainly get more challenging for him to manage SQ as the business scales.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post The 3 Scariest Risks With The Square Stock Growth Story appeared first on InvestorPlace.
Undoubtedly, Shopify (NYSE:SHOP) is the gift that keeps on giving. Despite serious reservations on both the fundamental and technical ends, the shares continues to defy gravity, with SHOP stock up 160% since the markets' December nadir.I'm honestly at a loss for words. The enthusiasm surrounding the e-commerce specialist has reached magnitudes not seen since the last cryptocurrency run.I must admit that I take this matter personally. Although I don't have any skin in the game, I recommended in mid May that InvestorPlace readers sell their Shopify stock. Since then, shares have gained slightly over 22%. That's just bonkers.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlthough I acknowledged Shopify's several key attributes -- including the ability for small-business owners to close the gap with their larger counterparts -- I brought in critical context. Certainly, SHOP stock has benefited substantially from the underlying company's meteoric growth rate. However, that growth comes from the low-hanging fruit of poor-quality businesses. * 7 Dark Horse Stocks Winning the Race in 2019 I argued that Shopify doesn't want to disclose its churn rate because it would cloud the sustainability of that growth. Of course, the problem for me is that none of my points mattered. Shopify stock charges forward. To be sure, it's not the first time that I've been wrong about this firebrand.Some strong fundamental news suggests that we'll soon see another leg up in SHOP stock. Having "conquered" the business-to-consumer (B2C) world, SHOP has eyes set on the business-to-business (B2B) model.The shifting priority makes perfect sense. Although B2C attracts headlines, thanks to companies like Amazon (NASDAQ:AMZN), it's a saturated and mature segment. On the other hand, B2B features untapped potential. We're talking about a U.S. market worth $1 trillion, which would be a game changer for a company that has barely cracked $1 billion in annual sales. Flaws Starting to Catch Up with SHOP stockGiven my lack of success calling Shopify stock, I'm not exactly looking forward to putting myself out there again. But despite what must sound like a broken record at this point, I'm still hesitant on the company.First, SHOP is in the retail business. While it has created a platform that allows small businesses to flourish, most of them are probably not successful there. Otherwise, why hide the churn?Further, Shopify isn't really unique nor does it have a moat. The power of SHOP stock lies in the company's brand name. But having a solid brand doesn't protect you from disruption. As a result, Shopify must demonstrate financial viability. The problem of course is that net-income losses are widening.Second, the growth picture for SHOP stock is mathematically showing signs of weakness. For example, in 2015 and 2016, Shopify's year-over-year quarterly revenue growth averaged 93%. Over the last eight quarters, that vaunted growth slowed to 64%. Sure, it's still lofty, but it's a marked decline from prior highs.More critically, that rate has consistently eroded while Shopify stock collected investor sentiment and dollars. Based on this trend, quarterly revenues will soon peak, and eventually flatline.Using sales data from the first quarter of 2015, I extrapolated revenue out to Q4 2020. The forecast isn't pretty, calling for a 27.4% growth rate. Nominally, revenue would be just under $622 million.Click to EnlargeOf course, data extrapolation isn't a perfect means to forecast future revenues. The results come from pure math. Obviously, they don't account for variables such as product launches, management changes, and political factors. * 7 Stocks to Buy As They Hit 52-Week Lows At the same time, SHOP has had ample opportunities to change their revenue-growth curve. But quarter after quarter, year after year, they keep sliding. The extrapolation merely reflects this established, negative trend. B2B Shift a Possible Sign of DesperationI'm sure management understands this. They have far better data, as well as a superior grasp on their business environment. Yet I'd bet that the result is still roughly the same: declining growth leading to peaking sales.Therefore, I don't view the B2B transition as a positive, but rather, a desperation move. Eventually, investors will want to see substantive results from SHOP stock. Currently, Shopify isn't getting those results from their B2C business, and they're unlikely to do so.But transitioning to B2B? I doubt that lightning strikes twice. Along with Amazon, SHOP must go up against powerhouse Alphabet (NASDAQ:GOOGL). Even Salesforce (NYSE:CRM) and Adobe (NASDAQ:ADBE) are getting into the game.This immediately tells me that B2B is whole different animal. Success requires not just a brand but substance to back it up. SHOP would essentially take a knife into a machine-gun fight. And that's why I'm cautious on Shopify stock, even if I was wrong before.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post Still Resilient, Shopify Stock Is Still a Sell appeared first on InvestorPlace.
E-commerce platform Shopify has long been the enemy of traditional retail. But, Shopify COO Harley Finkelstein says brick-and-mortar stores still have a place in retail, and that Shopify incorporates them into their business model.
In the stock market, investors are always looking for the "next big thing". Specifically, they are always looking for that one stock that is relatively small today, but which has the potential to be huge one day. In the process of going from small to huge, that stock rewards investors with multi-bagger returns.Most stocks don't make that cut. After all, there are thousands of stocks out there. Only a handful of them have market caps in excess of $100 billion. That's because the road from small-cap to large-cap is tough and 99% of stocks don't make it.But some stocks do make it, and those growth stocks are the ones that end up rewarding early investors with multi-bagger returns. See Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX) and Microsoft (NASDAQ:MSFT).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for the Coming Recession With this in mind, I've put together a list of 6 relatively small growth stocks that have a realistic opportunity to be the next big thing, or the next Facebook, Amazon, Netflix, Microsoft, so on and so forth. Will all of these stocks make it to $100 billion-plus valuation territory? Probably not. But a portfolio of the following growth stocks should perform very well in the long run. Shopify (SHOP)Source: Shopify via FlickrMarket Cap: $34 billionIndustry: e-CommerceAt the top of this list of growth stocks, we have hyper-growth e-commerce solutions provider Shopify (NYSE:SHOP).In short, retail is doing two things right now. It's going direct, because brands and retailers can now reach consumers directly and without middle-man friction thanks to the internet. It's also becoming decentralized, because the internet has connected everyone at the same time, so anyone can sell anything to anyone. Thus, direct decentralized retail is the future of retail.Shopify is the backbone of this future. The company provides commerce solutions which enable and empower the hundreds of thousands of sellers who comprise this direct decentralized retail model. Yet, gross merchandise value through Shopify stores measured just ~1.5% of global e-retail sales last year. Inevitably, as the direct decentralized retail model gains mainstream traction, Shopify's share of the growing e-retail market will expand.This expansion will drive huge revenue growth, which will come on top of big gross margins and a falling opex rate to drive even bigger profit growth. That profit growth will power SHOP stock materially higher in the long run. The Trade Desk (TTD)Source: Shutterstock Market Cap: $11 billionIndustry: Programmatic AdvertisingRight behind Shopify on the list of growth stocks, we have programmatic advertising leader The Trade Desk (NASDAQ:TTD), a company which can leverage secular automation and AI tailwinds to become a very important player in the global advertising market.In the advertising market, as is true in most markets, things are being automated. This includes the automation of ad spend -- dubbed programmatic advertising -- where companies are increasingly leveraging data and AI to make ad spend smarter, quicker and more efficient than ever before.The Trade Desk is at the forefront of this programmatic ad spend shift. The company operates a market-leading and best-in-class programmatic ad spend platform which helps advertisers more optimally allocate their digital ad dollars. But gross ad spend on The Trade Desk in 2018 measured less than 1% of global digital ad spend. * 5 Tech Stocks That Are Far Too Risky Right Now Thus, there is tremendous runway over the next several years for TTD to keep growing at a robust rate and turn into a very important player in the global advertising market, which is marching towards $1 trillion in annual revenue. Ultimately, that means TTD stock will one day have a market cap far in excess of today's $11 billion market cap. Okta (OKTA)Market Cap: $15 billionIndustry: Cloud SecurityAnother hyper-growth tech stock that has an opportunity to be the next big thing is Okta (NASDAQ:OKTA).Okta is a cloud company which has built a nimble, adaptive and high-quality identity-based security solution that enables any individual in any enterprise to securely access any software service through any device. The big thing here is that Okta's security solution is identity-based, meaning that it turns individuals in an ecosystem from a participant in that ecosystem, to part of the defense barrier for that ecosystem. This pivot basically means that so long as the individual is secure, the whole system is secure, and this opens up a whole new level of flexibility which enterprises desperately need today, but didn't think was possible.The growth angle here is that Okta exited last quarter with just 6,550 customers. There are nearly 6 million employer businesses in the U.S. alone, almost all of whom are migrating to the cloud and need a flexible, adaptive and identity-based security solution. As such, the growth runway for Okta in the U.S. alone is robust -- and even more robust if you take into account the international opportunity.In other words, Okta should be able to grow both revenues and profits by leaps and bounds over the next several years. All that growth will inevitably push Okta's market cap to levels far above $15 billion. Lululemon (LULU)Source: Shutterstock Market Cap: $22 BillionIndustry: Athletic ApparelTaking a detour from the technology sector, we now have Lululemon (NASDAQ:LULU), a hyper-growth athletic apparel company which could one day turn into a smaller version of Nike (NYSE:NKE).Lululemon jumped onto the athletic apparel scene as a high-quality producer of women's yoga apparel. The company developed a great reputation and strong brand equity in the women's yoga apparel market. Then, they leveraged that reputation and brand equity to expand into the broader women's athletic apparel category. The expansion was a huge success, and Lululemon maintained its high-quality reputation and strong brand equity. They subsequently again leveraged those features to jump into the men's market, and that expansion has experienced similar success.Broadly, then, Lululemon has developed a high-quality reputation and built strong brand equity in the athletic apparel space, two things which have enabled it to consistently expand reach and share in the market. This trend will persist for the foreseeable future, and the long term potential for Lululemon is to one day morph into a Nike-type company. * 5 High-Fee ETFs Worth Buying Despite Hefty Expense Ratios Nike has a $100-billion market cap. Lululemon has a market cap down around $20 billion. Thus, if this growth stock continues to expand share and reach, LULU stock is a multi-bagger in the making. Roku (ROKU)Source: Roku Market Cap: $11 BillionIndustry: Over-The-Top (OTT) VideoBack to the tech sector, we have rapidly expanding OTT video platform and service aggregator Roku (NASDAQ:ROKU), a company which -- if it plays its cards right -- could one day be the cable box of an exceptionally valuable global OTT video market.The dynamic in the OTT video market is one defined by rapidly rising supply and demand. Demand is rising because consumers are ditching pricing, programmed linear television packages, for cheaper, more flexible on-demand internet television services. Supply is rising because content providers are chasing that demand and pivoting into the internet TV realm by creating their own streaming services. Thus, supply and demand are both surging higher.Someone has to connect all that supply with all that demand. That's what Roku does through its OTT video service aggregation platform. Importantly, Roku does this aggregation better than anyone else, since: 1) Roku is content-neutral and has no complications with accessing any particular service, 2) Roku is winning the smart TV battle by being in more smart TVs than anyone else and 3) Roku's UI is super intuitive and consumer-friendly.So long as those three things remain true, Roku projects to be the cable box of the OTT video market and one of the biggest growth stocks of the stock market. One day, this market will be huge in terms of both subscription dollars and advertising dollars. As the cable box of the market, Roku will win its fair share of both sub and ad dollars, implying that ROKU stock will head significantly higher in the long run. Square (SQ)Source: Via SquareMarket Cap: $30 BillionIndustry: PaymentsLast, but far from least, on this list of potential next big thing growth stocks is Square (NYSE:SQ), the payments processor that has a unique opportunity to become a very important and disruptive player across the entire payments and financial services markets.Square started out as a payments processor to help facilitate non-cash payments in the brick-and-mortar channel so that small to medium sized retailers could keep up with the consumer shift away from cash. The company has since become much more. Today, in addition to helping facilitate non-cash payments in the brick-and-mortar channel, Square has extended its reach into the e-commerce world, developed a consumer cash transfer app, built out a payroll management software service, launched a lending business and so much more.In other words, Square has innovated its way into becoming an important player across the entire payments and financial services ecosystem. This innovation has laid the groundwork for tremendous growth over the next several years, as Square's many nascent businesses scale share across multiple different verticals. Most of these verticals are very high margin, too, so most of that growth will translate into even bigger profit growth. * 7 Dark Horse Stocks Winning the Race in 2019 Net net, Square is a payments company that projects as a huge revenue and profit grower over the next several years thanks to the company's ability to innovate across multiple different secular growth markets. Ultimately, all that profit growth will push SQ stock way higher in a multi-year window.As of this writing, Luke Lango was long FB, AMZN, NFLX, SHOP, TTD, OKTA, NKE, ROKU and SQ. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post 6 Growth Stocks That Could Be the Next Big Thing appeared first on InvestorPlace.
Shopify spiked to a new high Wed., after announcing plans to set up a distribution network to store/ship products for its merchant customers. Shopify's makes e-commerce software for small businesses, so this is a big expansion, moving into Amazon territory.