Shopify Inc. (SHOP.TO)

Was a darling, then made some bad acquisitions. But they've added new board and executive members and backed out of logistics. This invited me to enter this name. He's been adding to this and is optimistic.

Is volatile, too much for him. A great company that's made a great comeback. They cut back on spending and reduced jobs. Now a more mature company, but the PE remains rich. He's wait and see on this.

After its run, he sold and used proceeds to buy CSU.

The margins have improved a lot and it is expanding internationally. At 11 X sales it has a high valuation along with a slowing growth rate. It wants to get into the enterprise market but it will take a while and its clients may not want or need comprehensive solutions.

Has a sticky recurring revenue business in their e-commerce enablement business, plus they can upsell through ancillary services like shipping.  A secular growth company with high valuations and volatility, but expects it to grow dynamically. Likes the asset-lite model of trimming the executive board. He keeps adding to this.

$22.82 is his model price. He predicts SHOP will test $64.80, a stop. If it falls below that, sell. Maybe this is a trade. Doesn't sell upside.

He targets $84.60. Top and bottom lines are much more consistent, so no longer a spec buy but long-term. Buy at $69 and add more at $67 and more at $61.

E-commerce is an ongoing trend but there is less of it than during the pandemic. It is a growth company so the headwinds are high interest rates. She thinks the valuation is too high.

All tech has enjoyed a monster bounce this year, including SHOP. Canadian tech stocks don't go from strength to strength and have a life cycle instead, given catch-up in technology and depth of management. He's never owned this, not a fan of Canadian tech stocks.

He targets $22.98 or 68% lower. The earnings haven't caught up to them. A high beta name. Sell at $63.23.

Over-expanded during pandemic. Partnership with AMZN will help. Valuation still too high despite pullback.

We still like SHOP and suggest it as a long term growth pick. There is no specific news today, but last week Tik Tok came out with an app that may allow merchants to be less reliant on existing e-commerce players. Last week Ark Funds also announced it had sold some of its SHOP positions. Profit taking could also be at play, the stock is still up 72% YTD. Tech in general has also been weak of late. 
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It's a bit pricey but he likes it. Online shopping will continue to grow and SHOP is a mainstay for Canada.

Soared in 2020-1, but plunged in 2022. It was valued as if it were Apple or Microsoft, but it's smaller. The PE is much more reasonable now and a good entry point now. That said, he prefers other tech stocks.