SHOP - Shopify: Wait For The Inevitable Dip
2024-03-27 15:24:58 ET
Summary
- Shopify Inc. stock has doubled in value from $40 to nearly $80 in just a few months, reducing the current appeal.
- The e-commerce platform is on a path for consistent 20% growth rates.
- The investment thesis remains Neutral on Shopify Inc. stock due to valuation concerns trading at 11x EV/S targets, with normal selloffs providing better buying opportunities.
Shopify Inc. ( SHOP ) is a prime example of a stock obtainable at just above $40 only a few months ago that the market is now chasing at nearly $80. The e-commerce platform even dashed investor sentiment last month after a meager Q4 '23 beat , yet the stock has rebounded to multi-year highs on strong growth potential. My investment thesis remains Neutral on the stock based on valuation and the knowledge selloffs eventually occur, providing better buying opportunities of market leaders....
Shopify: Wait For The Inevitable Dip