whats your thoughts on shopify stock. has grown 150% in last 1 year. business and management seems to be strong but their high PE ratio seems to be of worry for me.
Undervalued. Will go to $1 trillion soon
I need to smoke same thing as you!
Killing it and about to start competing with Amazon logistics.
You went from FB to Shopify? Can you share why you made the switch if you don't mind?
Man it’s literally more than $1000 now
Ya this post didn't age well
Checking back in after 6 months = took out a new all time low yesterday at $297/share and p/e is still in the 240x range. Like the company & team. But. Like Buffett says. You can turn a good business into a terrible investment by paying a totally ridiculous price.
My take is that it is over-valued. They are able to increase their valuation by showing future prospects and also some investors are in it for acquisitions. The only problem I see is their business model if they do not deliver the promised results. Plus at their current pricing I do not think they are aiming for valuation either because that door has passed. No investor or firm would want to buy a company that is over-valued for an actual price. So its acquisition happens if their stock price goes down. This is all my opinion, getting insights from their investor calls. My information doesn’t reflect on company’s performance because they are doing some amazing work. Folks from shopify could give insights on why their stock is over-valued or what they think about the future of the company. As for me, I have not invested in the company til date but have been analyzing their stock and investor calls for the past 6 months. While there is no chance I would buy shares here, don’t call it a bubble. The company is losing money and trades at 33 times their sales. Their valuation is illogical based on current measures and things could go wrong badly. It’s currently narrative driven. They are trading at 23 times their projected 2019 revenues after all. So based on all the metrics, even though the company has been posting robust growth, it is over-valued. They have higher operating costs and increasing,vehicle their revenue growth rate is decelerating.
Thanks for the info. Still contemplating if it’s the right time to pull out of the stock
Depends. If you have made good profit then you can pull out. Rule 1 with stock market for individual investors, don’t be too greedy. I mean it could go both ways. It just depends on if you’re prepared to accept the loss if it goes down. Always remember, higher the risk, high are the rewards in stock market. So it depends on how much risk you’d want to take.