CA - Shopify: Strength Through Partnerships
2024-02-01 07:40:38 ET
Summary
- Shopify's stock had a strong 2023, in part due to the company abandoning its logistics ambitions and focusing on profitability.
- Shopify's core e-commerce market is returning to pre-COVID trend growth, but the company's future growth will be lower than the past.
- Shopify's partnerships, such as with Amazon and Flexport, support its competitive position but this comes at the expense of upside in areas like logistics.
- While Shopify's competitive position has solidified and margins are likely to improve significantly going forward, the company's valuation and growth create an unfavorable setup.
Shopify’s ( SHOP ) stock had a strong 2023 due in large part to the company abandoning its logistics ambitions. This, along with cost discipline and operating leverage, has allowed Shopify to rapidly turn around its profitability. Growth has also been robust, with many expansion products beginning to pay off, and Shopify’s core ecommerce market returning to pre-COVID trend growth....
Shopify: Strength Through Partnerships