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!