Shopify Inc. (SHOP.TO)

This week ATB Capital upgraded its rating to Outperform from Sector Perform. MoffatNathanson similarly elevated its rating to BUY. The stock had naturally experienced significant downward pressure previously. There is no additional news to report. Strong earnings results are broadly anticipated. Unlock Premium - Try 5i Free

Great Canadian success story. Gold standard in e-commerce. Increasingly catering to large enterprises. Tiered-price-point monthly recurring subscription fees. Adding on financial services of various kinds. 

Increasing partnerships. Aggressive international expansion strategy. Long-term secular tailwinds for e-commerce. Innovation pushes up the take rate from transactions. He expects 33% compounded growth rate over next 3 years. Always pricey, now at 59x forward PE (down from 5-year average of 70x). No dividend.

Loves the company, management are geniuses. But even with the falloff, shares are trading at 60x PE. Too expensive for him. You're betting on continued huge growth, which looks to be moderating due to the law of large numbers.

Strong financial results and a positive forecast would certainly be beneficial. SHOP had been underperforming leading up to this week, though without any specific catalyst. News related to Anthropic AI affected the stock earlier in the week, but they believe the market reaction was disproportionate. There haven't been any adverse company developments, and several brokerage firms have issued supportive commentary over the last week and a half. The stock rose alongside broader markets on Friday before pulling back, though they wouldn't place too much weight on a single day's performance. Even so, its 32% year-to-date decline appears excessive considering analysts' projections and the company's prospects. Unlock Premium - Try 5i Free

Rotation out of some of the high flyers over the past year or so. Appreciated fairly significantly coming out of last April's lows. Then for whatever reason (and sometimes there's no reason) you get a selloff. Sometimes a name gets caught up in the laundry and you just have to ride it out.

Probably the best Canadian tech name. Platform's used across significant marketplaces, and doesn't know that that's going to change. If you want Canadian tech, you could look at this name. However, he'd look at MSFT or NVDA -- also down, but a straighter path to upside.

Its business is doing fantastic. So many companies are reporting good results, yet market is concerned (perhaps about AI or about valuation). NASDAQ's having a good day today, but that can turn on a dime on any macro news. 

His firm stayed away on valuation; they go for 30-40x PE maximum. High-premium companies bring a lot of risk, and you should expect a lot of volatility even if they meet earnings expectations.

Sold off as part of the broader software selloff, which she's using as an opportunity to add. Will benefit from AI -- embedded in products will make shopping experience more effective. CEO is on the forefront of innovation. Likes it a lot here.

A lot to like with their business, but stumbles upon its valuation. Growth is still there. It can sell off a lot, as the last 5 years show.

The Canadian darling with a great CEO. It is integrating, not fighting, AI platforms--good, and OpenAI is shifting towards shopping, which favours SHOP. SHOP is partnering with Google to achieve this. Meanwhile, Meta is investing heavily in AI to create more-targeted advertising. Shopify benefits from this without spending a dollar.

Online shopping isn't going away. Retailers aren't going to need less help getting products to market. AI will be involved. Doesn't know if SHOP will be the dominant player in the space. Sector still has life in it. If you own it and have done well, no harm taking a bit off the table.

It is heavily into AI. For example it won't hire someone if it can proved AI can do the job. It is working AI into its merchants platform. An AI catalogue is coming whereby an AI agent searches all the merchants available for a product and can even process the transactions. Shopify tends to have higher quality vendors than Amazon.

Not a bad chart, but is a volatile stock. If you're into Canadian tech, you have to own this. Is very global, but tied to consumption. The consumer has not been the most robust. Hold the right proportion in your portfolio.

He doesn't own it because of his valuation bias, but it has performed really well and is a great Canadian story. As with anything else in its position it would be good to take some money off the table.

He first bought at $36 in 2016. Now incredibly expensive. They're executing, they're everywhere. You really have to use the chart for when to buy. Good stocks have a way of shaking out investors. Long-term winner, but he doesn't know that he'd be adding right here, right now.

Do you own it in a non-registered account and paying big taxes in April? That's a factor. Wherever you put new $$, it would have to be 25% better to justify selling.

SHOP has done an incredible job. Is a great business, generating a lot of free cash flow in coming years. They sold some assets that they needed to. Small businesses use Shopify, so they have a great growth profile. Will continue to do well. Are executing better now than a few years ago.