Thesis Summary
I have written about Shopify Inc. (NASDAQ:SHOP) in the past expressing bearish views on the stock. For more traditional investors it is hard to justify an investment in this company. However, after the
If Anyone Can Take On Amazon, It's Shopify
Summary
- Shopify trades at a high valuation, but it is a growth stock with a compelling story.
- The main threat to Shopify is Amazon, but I argue here that Shopify offers a different service and is better positioned to create value for the next generation of sellers/consumers.
- The recent sell-off makes Shopify's valuation more attractive, especially since fundamentals keep improving.
James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.
The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more.Analyst’s Disclosure:I/we have no positions in any stocks mentioned, but may initiate a long position in SHOP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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