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Is Shopify (SHOP) bottoming out?
September 6, 2022
| As I prepared to go on the TD Ameritrade Network today to talk Shopify (SHOP)… I came across some interesting notes and charts from the LikeFolio research team. Today I thought it would be fun to simply share the “research behind the scenes” in its raw form. I think you’ll be as impressed as I was… not just with the team and data we have here…but also with Shopify’s underlying growth story and potential. So here it is… the raw show notes as I received them: |
- Shopify grew very quickly...perhaps too quickly. Now it is mitigating. Shopify grew from ~5,000 employees + contractors in 2019 to ~7,000 in 2020 (at the end of 2021, it had ~10,000). Recent layoffs in July and August and restructuring place the current headcount near 8,800.
- The bar is extremely low. Last quarter, it missed earnings and rev, issued weaker than expected guidance, noting 2022 “will end up being different, more of a transition year, in which ecommerce has largely reset to the pre-Covid trend line and is now pressured by persistent high inflation.”
- LikeFolio data shows Shopify is growing faster than eCommerce peers, albeit slower than itself in the past. It also has a higher happiness rating than eCommerce middleman, Amazon.
- Shares are currently trading lower than they were in 2019 while the actual demand for its products is up significantly in the same timeframe -- potential opp for long-term investors?
I’m not ready to blow the “ALL CLEAR” horn on SHOP stock just yet… but there is a compelling case to be made for putting this one on your watchlist.
As soon as we get the green light from LikeFolio data, members will be the first to know!