Shopify Inc. (SHOP.TO)

Stock's been re-rated by Bay Street and Wall Street. A lot of the worst has been priced in. Well run. Can control margins, so earnings and profits can get better. Expectations are so low, downside has been mitigated and even a marginal beat could make the stock really move. No dividend.

Valuation does matter, and it's now more digestible given where the stock price is.

Big tumble recently. Priced for perfection at 100x earnings, so everything better go well. Forecast for growth was light, from low 20s to 18%, enough to knock it down dramatically. Still expensive at 12x revenue.

Many other companies growing in high teens that you can buy for much more attractive valuations.

Valuation's a bit rich for his models, 61x forward PE. Trading below 200-day MA on tough news in May. Shows that there's little margin for error in some of the high-flying tech stocks.

200-day is starting to flatten. Price to sales is about twice that of the S&P. Exciting, 35% growth rate, but you're paying a premium.

Quarterly report caused stock to fall sharply. Fine in isolation, but didn't meet revenue growth expectations. Higher expenses. E-commerce model is not broken, it will be a leader. Hasn't found any buying support yet. He'd consider it on another 10-15% drop.

Recent earnings report not as good as expected. Despite pressure on share will continue to own shares. High growth company with strong margins. Operating margin slightly down, but trends are very strong. Excellent management team with good track record. 

Likes its business, great setup. Stock's expensive. Q1 report is seeing a slowdown, and the market doesn't like that. Great brand and management. Will keep growing, just not at prior levels. Will be in the penalty box for a bit, needs to base for a good few months. If you hold, close your eyes and wait through the summer.

Huge beneficiary during pandemic, expanded, dialed back since then. His hesitation is that, going forward, omnichannel will be the way to go. Whereas SHOP is generally online only. Valuation is high, vulnerable on bad news (like today). But if the price were right, he'd take a look.

Recent pullback was a good opportunity to buy. Recent uptrend is good for investors. From a technical perspective - good time to buy. 

Expecting eCommerce strength to continue. Would recommend buying stock. Expecting further gains in the stock towards $150-$200/share. Support level appears around $100 per share. Very good management team that is founder led. 

Secular tailwind is rising adoption of e-commerce. "E-commerce in a box" for small outfits. Increasingly larger enterprise customers. Shifted to a less capital-intensive strategy. Earnings reports are usually a catalyst. Continues to roll out ancillary offerings, which increase take rate. Pullback is a buyable dip.

It should be okay. They used to grow at 70-80% annually, but now at 20%, but profitability is climbing. More a buy than a sell, but it's not cheap at 80-90x valuation. Are better choices out there.

Largest tech stock in Canada with eCommerce service offering. Recurring revenue model with add "apps" + and financing options. Very sticky business model. Expecting higher earnings with divestment of fulfillment business. New management has focused on profitability. 48% growth in earnings expected in 2024. 33% price increase on subscription fees also adding to profits. 

Difficult to value in the short term, but overall a strong brand name and company. Valuation is very high, but earnings not steady. Company still proving itself. Very strong supplier of infrastructure in eCommerce space. Question of strength of business vs. stock performance. Value proposition of helping small business online - very attractive. 

Known for growth, now #3 in Canada in terms of market cap. Likes the way it supports small businesses, critical for growth of our economy. Finally profitable during Covid, dropped since then. Extremely high multiple. He needs to see earnings grow towards stock price.