Shopify Inc. (SHOP.TO) Buy, Sell or Hold

Shopify Inc. (SHOP.TO)

236.24

-0.17 (0.07%)

as of Oct 23, 2026, 8:00:00 pm Market Closed.

980 watching

DON'T BUY

3200x forward PE. Blended 12-month PE is still 1800x earnings. Has done well, but expensive. Pandemic has fast-forwarded the push for e-commerce by 10 years. Growth rate and earnings look as though they'll be strong. Other names give you more quality and value. Tricky to buy it at this level.

WATCH

A cloud based commerce platform for small and medium sized businesses. An alternative to Amazon. Interesting to watch, but the valuation is very expensive -- 50 times forward sales. Momentum investors are the likely ones trading it now.

SELL

Why the recent run-up? A wunderkind stock in focus during the pandemic. The business is excellent, but the stock is not at current prices. He bought and sold this a while ago. He scratches his head now--high expectations and high valuations. Earnings--they don't make any money. Too rich for his blood. He'd sell it.

DON'T BUY

They did tremendously well from a stock price perspective. They are extremely expensive. He prefers others.

HOLD

Post-pandemic? He does not own this -- he wishes he did. SHOP is in a sweet spot -- helping companies build their online presence. This will not slow down as companies will have to get to there in the future. The big issue for them is getting into logistics. This will be a big cost spend for them, but he does not think it changes the dynamic of their success. The trend to online shopping growth will continue.

DON'T BUY

Valuation is a problem for him. 2372x is their foward PE at a 46% growth rate. Shopify caters to small/medium businesses, which are most vulnerable to a second wave.

DON'T BUY

He has not owned this one. It has been amazing but its valuation is not based on earnings, future or present. They benefited from everyone shopping on line and he thinks they will lose some steam coming out of this. LSPD-T might be a better stock going forward but be does not play in either of them.

TOP PICK

It has already rising over 160% this year. Its time is now. He likes how analysts see this on an Amazon type of trajectory, with revenues about to soar. They are partnering with Facebook. It is exploring entering into commercial payments beyond the mom and pop type entities he thinks. Yield 0% (Analysts’ price target is $715.11)

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COMMENT

Canadian tech? OTEX and SHOP would be good Canadian tech companies, along with CSU. All well situated for the cloud and e-commerce. He expects to see a market correction, so would wait for lower pricing.

BUY ON WEAKNESS

He does not own it as it hit his price target, so he took profit of over 50%. He regrets it today. Their recent earnings, reported today, were $0.19 EPS versus expectation of $0.09. They still have a long runway as they are entering into international markets. He would look to buy back in in the $400s range.

BUY ON WEAKNESS

He owns this now and it has rocketed up in the past few weeks. They have been allowing vendors to receive some short term financing to help them stay in business. It is now the second largest company on the TSX this means a constant buying presence. For new investors, he would be mindful about this fact and suggest caution chasing the momentum.

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TOP PICK

Shopify remains a buy for many Bay Streeters. Volatile, yes? Sky-high PE, you bet. Unaffordable for some retail investors, yup. But during the lockdown of the past month, Shopify has kept pace with the TSX and beaten it in the past five days and three months. The best argument, says tech analyst Kim Bolton, are its tremendous international opportunities and momentum. Other analysts such as Gerard Ferguson advise picking away at it during pullbacks. Trading at just over $500, Shopify now sits around its 200-day moving average of $519 and is roughly in the middle of its 52-week high-low range. Since the pandemic struck through March 7, Shopify has closed below $500 only five days.

DON'T BUY

He used to own it. His concern at the time he sold was valuation. It is a pretty high expectation stock. Will they be a beneficiary of ecommerce while store fronts are closed? But they also had merchants selling fake hand sanitizer and so on, which got kicked off the platform. They are probably THE most innovative company in Canada. He thinks the stock price is too high to get him interested in it.

TOP PICK

He sold it at $578, then rebought it. The poster child of e-commerce. The valuation concerns some, but look at their runway going forward: the fulfillment business, and tremendous opportunity internationally. (Analysts’ price target is $511.04)

WAIT

SHOP vs. LSPD SHOP does have some profits. He'd be a buyer, but closer to the 200 day, which is $493. He's a fundamentalist at heart. Still, if you focus too much on that, you'll miss the boat. Look at the chart, price to sales, and whether the business is well run and necessary to commerce. You can't wait for just the numbers. Longer term, you can own it. LSPD won't be the next Shopify, but it does have a lot of good growth vectors. You can pick away at it here at these beaten up levels.

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Shopify Inc. (SHOP.TO)