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Q4 2020 Tech Earnings: Shopify, Roku, Fiverr And Palantir

Mar. 03, 2021 4:48 PM ETFVRR, PLTR, ROKU, SHOP, SHOP:CA16 Comments


  • We discuss key points in the earnings report from a leading e-commerce software company.
  • We also discuss Roku and why CEO Anthony Wood does not believe his industry has seen a pull forward from COVID.
  • We review Fiverr's company’s growth potential as a gig economy leader with the recent launch of its subscription service.
  • Lastly, we talk about Palantir.
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Tech stocks have been selling off recently despite some healthy earnings reports. Below, we discuss key points in the earnings reports from leading e-commerce software company Shopify (SHOP), a company that's not sitting stagnant by any means. We review Shopify’s product road map and how the company continually innovates to maintain its lead.

We also discuss Roku (ROKU) and why CEO Anthony Wood does not believe his industry has seen a pull forward from COVID-19 but rather a structural shift that benefits AVOD and programmatic CTV ads long-term. In my previous analysis on Forbes, I had pointed out that Roku’s true market is pay-TV advertisers (rather than cord cutters). This was echoed on the recent call (nearly verbatim). Management also explained why Peacock and HBO are not truly competitors but rather increase the pool of customers for Roku.

Fiverr (FVRR) is a stock that has seen phenomenal gains of more than 800%. We review this company’s growth potential as a gig economy leader with the recent launch of its subscription service.

Lastly, we talk about Palantir (PLTR). The company is guiding for 30% growth over the next five years which didn’t match its valuation going into earnings. Under the hood, the commercial accounts growth was a paltry 4% although perhaps the recent partnership with IBM (IBM) will help strengthen the commercial customer base.


Shopify had another outstanding quarter as the company took full advantage of secular industry trends to deliver a record holiday quarter. The company beat analyst expectations for revenue, earnings, and gross merchandise volume (GMV) when it announced Q4 results Feb. 17.

The company continues to invest in fulfillment and international growth for increased TAM. Below, we discuss additional ways that management plans to expand including with Shop App and Shop Pay.

Q4 Results:

Shopify grew revenue

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This article was written by

Beth Kindig profile picture

Beth Kindig is the CEO and lead technology analyst for the I/O fund and has ten years of experience as a professional in the tech industry. She is a regular speaker at tech conferences and on financial news programs such as: Fox Business, TDAmeritrade, CoinDesk, NPR, Bloomberg TV Asia, Motley Fool podcast, This Week in Startups and more discussing her stock analysis. She is known for making bold calls on tech stocks.

Beth is the leader of the investing group Tech Insider Network where she utilizes her team’s nearly two decades of Silicon Valley experience to combine fundamental and technical analysis to consistently beat Wall Street funds such as ARKK and QQQ (he performance is fully audited). Features of Tech Insider Network include: A fully transparent portfolio, institutional-level research reports, real-time trade notifications and market signals, automated hedging signals, weekly webinars, and chat. Learn more.

Analyst’s Disclosure: I am/we are long ROKU, SHOP, FVRR.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (16)

Eric_Riggs profile picture
I would not invest in any of them except for PLTR that has a strong competitive advantage on government contracts (high barrier to entry) and sustainable growth and margins in the future. I'm a buyer in the 20-25 range.

SHOP and FVRR are trading at astronomical P/S. FVRR needs to deflate a bit before it can go back up. The strong job outlook should help them, but that's going to happen later in summer.

SHOP will suffer - SHOP has everything priced in already and the external environment will not be to their advantage in 2021/22. With the vaccine, people will spend more money on traveling, restaurants and less money on online shopping. More competition is coming their way and their profit margin is already super low. More room to drop from here IMO.

Never been a fan of ROKU, but that's one of these stocks that did very well over the years. Too much competition for me. I can't see the alpha in this stock. I'm neutral.
BAHAMAS1 profile picture
Long PLTR for the Long Term.
Ta0 profile picture
I cried when I read about $ROKU. 😭😭😭
I was going to buy it when it was $35, but for some reason, didn't activate the limit order and missed it. Then I waited for it to return to the $30s but it never did.
@Ta0 There will be other opportunities. Keep an eye on Beth. She has great ideas.
Ta0 profile picture
Thanks Bold. I have her saved as a followed author.
Thank you for an insightful report, covering stocks that have highly complex business models! I'm another one of those who are hurt by the massive swoon in recent days, with no clear line of sight whether the bad times will continue, or, even if the economies worldwide improve, these stocks will see better days ahead?
Very thoughtful analysis, can you do the same for LMND!
@jmatalka I think the author did enough and I would prefer that you do the same for LMND. Let us know when its ready for our review.
Tall Seller profile picture
Thanks Beth.

I very much look forward to seeing Shopify roll out and develop a bunch of their stated initiatives and planned doubling of their engineering department (seen here from their CTO: twitter.com/... ) to execute on their goal to “scale” this year.

This month could also be one of the most exciting months ever for Shopify, if their Diem Association [https://www.diem.com/ ] launches as reported (here: www.coindesk.com/... ), where their stablecoin blockchain solutions look to be generationally disruptive on the absolute largest possible scale.

SHOP will continue to delivery. PLTR just hold and look in 10 years.
Eric_Riggs profile picture
@salnaz641 Have to respectfully disagree. Shopify does not have any competitive advantage like PLTR (niche market in govt contracts). Find me another company like PLTR? On the other hand, Shopify has dozens of good competitors and no proprietary business. They are also in the discretionary business. I expect that competition will increase in the discretionary business in the coming years, especially when people were not allowed to travel or go to the restaurant for more than 1 year. I've been short on SHOP at 1400, and I think there's more to come.
30% growth is 30% growth. Why the worry about Palantir's commercial customers. Has nobody ever held aerospace and defense names?

Their government contracts already cover multiple agencies and departments. By the time the Army contract rolls off, they will be emedded deeper than a tick.
Great article especially after a day like today. Thank you. LONG SHOP, ROKU, FVRR
@Bull Market 2K20
All great company at a hyper inflated price thanks to the fed and zero interest rare
Yup - fed and free money. We can swap over to banks, industrials, and materials ... lock in gains/losses on tech ... in the hopes we tread water. Or, we can stay with the growth companies showing the strongest earnings (ie, msft, aapl, amzn, nvda, hubs), wait out the pain, and be sure to be there for the sudden uptrend when it comes.Market appears to be thinking the fed will raise rates about 15 months from now in mid-2022. There could be a lot of pain between between now and then - though we are certain to get pops on growth stocks along the way. The idea behind 'being long' is accepting the the short term pain and being patient.This is a good article.
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Related Stocks

SymbolLast Price% Chg
Fiverr International Ltd.
Palantir Technologies Inc.
Roku, Inc.
Shopify Inc.
Shopify Inc.

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