Shopify Inc. (SHOP.TO)

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.

Has been breaking down on a relative strength basis, but falling more than the overall market. Next support is $180. The 2-month chart shows a head and shoulders pattern and continues to decline, an awful chart. The downtrend will continue.

He tends to look south of the border for tech names. Performed well since mid-2022. Very nice pattern of higher highs and higher lows. As well, 200-day MA is moving higher. Valuation is where he stops and thinks twice -- 91x forward PE, for 30% growth. That's a 3x PEG ratio, pricey relative to other mega-cap tech names.

Margins under pressure from greater transaction losses. Very exposed to small-medium businesses, which tend to have higher failure rates. Competition from AMZN, CRM and ADBE.

Nice long-term trend. Recently made significant higher high, which wasn't parabolic so it's not super-overbought. Pulled back within the trend, and it's anyone's guess how far down it goes. Probably won't drop all the way to trendline of ~$150, unless something really goes wrong.

A buying opportunity if it falls a little bit more and then finds a base.

Volatile, because it's high-growth and high PE. SHOP is doing very well in Europe. Is a fine long-term hold. 

Volatile. Valuation high. Annual growth rate is high 20s-30%. Unique position in the market. Reminds him of AMZN 8-10 years ago. Now generating better operating profit and operating profit margins. Should start to see a lot more of the growth flow to the bottom line.

Continues to like. No reason to sell. He owns a decent position, though not "index weight".