Stock price when the opinion was issued
Pay attention to the old highs (~$200), and stock's getting close to them. Recent peak does appear to be breaking the last one. Probably will get to the $200 area, so still a few bucks to go. From there, that's when to start chewing your nails, as it's stalled there before when those old buyers just want their money back.
A tough one. Lots of speculation in the name. If you look at it with a purely quantitative view, you'd be a bit nervous. Still in the high growth, ramping up operations, risky "startup" phase. Improving ROC. Valuation makes him pause.
Doesn't have a problem owning it, but should not be core. If your portfolio has 20 stocks, 5% each, then this one should only be ~2%. With today's earnings pop, good to trim.
This type of company is out of his wheelhouse. He looks at cash flow; SHOP's free cash flow is too expensive. SHOP has been growing like gangbusters. He watches it, because it's significant in Canada. The changes in US taxation did not impair SHOP, surprisingly. Their business keeps going very well. Is a momentum name, but growth could slow and the street could focus on its cash flow down the road. The PE is rich.
Another tech giant that is rejuvenating these days is Shopify. It’s a great Canadian success story, but a victim of Covid, when shares peaked at levels 250% higher than today’s $86 shares. SHOP has rallied 83% so far this year and popped 5% to begin this week. It’s been in the penalty box for so long that the street is letting it play again. One popular measure that the company is undergoing is phasing out its fulfillment services to raise profits. E-commerce isn’t dead, as some analysts proclaimed, but taking a breather after years of lockdowns. Gross merchandise volume climbed 15% over the past year, monthly recurring revenue increased 10%, and overall revenue rose 25% to $1.5 billion. Read 3 Big Tech Stocks Making a Comeback for our full analysis.