Shopify Inc. (SHOP.TO)

Still down massively from highs by about 67%. Cost-cutting is helpful, but valuation still expensive on all metrics. Stock is above the 200-day MA, seems to be basing. Overbought with today's news. Take some money off table.

The second-best performer was Shopify (SHOP) whose stock was up 32.4% in November, but down 67.06% YTD. It too has jumped around this year, having been worst in April, best in July, and 2nd best in September.SHOP is a leading provider of essential internet infrastructure for commerce, offering tools to start, grow, market, and manage a retail business of any size. It is particularly attractive to small businesses and occupies a nascent software niche that is growing rapidly. 
Black Friday sales were a record: 52 million customers (up 12%) bought more than $3.5 million per minute at 12:01 PM EST on November 25. Management expects revenue growth to continue with Merchant Solutions revenue growing at 2 times that of Subscription Solutions revenue. While the growth in Operating expenses is expected to decelerate in the 4Th quarter, an operating loss at a similar level to the 3rd quarter is predicted.
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Has done a great job, especially during Covid. The tough part for SHOP is they have to become a logistics company like Amazon had to which will cost a lot of money. They offer a lot of value to small/mid-sized company which need e-commerce, even though consumers are back at shopping malls.

Steer clear. He's a cashflow-focused investor. Weak operating fundamentals in terms of earnings and cashflow. Very appealing business from a usage perspective. As an investment, leaves a lot to be desired. 

E-commerce is definitely on a secular growth path, but this is a competitive space. Are trying to expand offerings. Some turnover among executives, though. Wants to see more stability.

Great name, but never for the faint of heart. PE still can't be modelled. All about momentum and sales growth. Ubiquitous story on the internet, but what level do you want to pay for it? Sell puts and try to own at a lower strike. A longer-term winner. Entry levels for high-octane stocks really do matter.

Likes the business and leadership. Huge addressable market. On his bull market game plan for when he's more constructive on markets. Would like to buy at lower levels, probably later this year. Very high beta.

Shopify is part of a group of companies that are ingrained in the world through their technologies, products and services. These companies were very much over-valued but cost cutting is having a good effect. It is adding subscribers.

Last week for the first time in quite a while, some info tech names showed up on relative strength. See his Top Picks. Signs of a positive shift, especially in the US, towards info tech. Still, given higher rates and the sensitivity in the economy, he still favours financials, industrials, and materials.

Many investors bought at very high levels. Painful. SHOP is now rebuilding its entrants in getting more avenues to the end buyer than just 2-3 years. The stock is not a bad play for online shopping now as a long-term buy.

Had a good run, got to price target, he traded out. Fallen from grace days of 2021. Bit rich. Can probably get it closer to $50 and 45, but you probably won't see it much below that.

Doesn't have the proven business model he's looking for.