Technology StocksShopify Inc (SHOP: NASDAQ) SHOP.TO

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From: IceHawk9/12/2017 4:33:45 PM
   of 17
Shopify Stock Soars to New High -- 5 Metrics Driving It Higher

Another day, another new high. It seems like there's nothing that can stop Shopify stock.

Daniel Sparks ( TMFDanielSparks)

Sep 12, 2017 at 3:01PM
It was just over six months ago when I wrote about Shopify's ( NYSE:SHOP) mind-boggling 200% rise in just 12 months. Now the e-commerce platform company's stock has climbed 89% higher. It's been on an absolute tear, up a wild 363% since the beginning of 2016.

With Shopify stock hitting new highs again this week, it's a good time to look at some of the metrics driving so much optimism. Five metrics, in particular, stand out as key factors behind the company's success recently.


Shopify's revenue growth has persisted at extraordinarily high rates. Second-quarter revenue was up 75% year over year. This revenue was driven by a 64% year-over-year increase in subscription solutions revenue (a marked acceleration from the segment's year-over-year growth in the prior quarter) and an 86% rise in merchant solutions revenue.

Consider how this revenue growth compares to industry peers Square ( NYSE:SQ) and PayPal( NASDAQ:PYPL). Square's second-quarter revenue increased 26% year over year. PayPal's was up 18% over the same time span.

Demonstrating Shopify's ability to scale its business, gross profit climbed faster than revenue on a year-over-year basis in Q2. Shopify's second-quarter gross profit was up 83% year over year.

Another sign of Shopify's ability to scale its business as revenue grows: The company's second-quarter adjusted operating loss narrowed to 1.9% of revenue in its second quarter, an improvement from 3.7% of revenue in the year-ago quarter.

Of course, this non- GAAP figure adjusts for share-based compensation -- a significant expense in tech-heavy sectors like Shopify's, so investors should view this adjusted metric cautiously. Nevertheless, it is encouraging that Shopify's GAAP operating loss as a percentage of revenue hasn't worsened even as the company invests heavily in growth opportunities; in Q2, it was 10% -- the same as it was in the year-ago quarter.

$5.8 billion:
Shopify's gross merchandise volume (GMV) during its second quarter hit an impressive $5.8 billion, up 74% from its $3.4 billion worth of GMV in the same quarter last year.

Shopify's share of merchandise volume is smaller than those of its peers: Square's second-quarter payment volume was $16.4 billion and PayPal's was $106 billion. But, once again, Shopify is growing much faster. Its second-quarter GMV climbed 74% year over year, while Square's and PayPal's payment volumes increased 32% and 23%, respectively.

Along with its second-quarter earnings release on Aug. 1, Shopify announced that over 500,000 businesses now use Shopify. This puts Shopify's average annual compound growth in merchants since 2012 at a whopping 74%.

Importantly, this large base of merchants is increasingly diversified across the globe. Not only are these half a million merchants spread across 175 countries, but Shopify's Asia, South America, and Africa geographic segments are growing very rapidly. Second-quarter merchant counts in these regions were up 82%, 168%, and 70%, respectively. North America merchants were up 56% year over year.

These metrics demonstrate that Shopify stock's incredible recent performance is backed by significant substance. But investors interested in the stock shouldn't automatically bet on Shopify just because the company seems to be firing on all cylinders. It's just as important for investors to consider the implications of the stock's meteoric rise during this period.

Shopify seems to be doing everything right. But its soaring stock price already reflects the expectation for outstanding execution for years to come.

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From: IceHawk9/13/2017 2:44:56 PM
   of 17
Why Shares of Shopify Popped 20% in August

Investors were happy to see the company report strong growth in the second quarter.

Chris Neiger ( TMFNewsie)

Sep 13, 2017 at 1:04PM

What happened
Shares of Shopify ( NYSE:SHOP) popped 20.1% last month, according to data provided by S&P Global Market Intelligence, after the company reported 75% year-over-year revenue growth and 83% year-over-year gross profit growth in the second quarter.

So what
Shopify's growth story continued in the second quarter, with revenue, gross profits and other key metrics all jumping by high-double-digit percentages. Aside from the company's revenue and gross profit gains, Shopify also saw its merchant solutions revenue pop 64% and its gross payment volume jump 74% year over year.


The company is still operating at a loss right now, but it closed the gap toward profitability by reporting an adjusted operating loss of just 1.9% of revenue in the second quarter, compared to 3.7% of revenue in 2016's second quarter. Shopify also beat analysts' expectations in the quarter with a per-share loss of $0.01, which beat analysts' consensus earnings estimate for a loss of $0.07.

As if all that weren't enough, the company also said in August that it now has 500,000 customers across 175 countries. That puts annual growth at an extremely strong 74% pace since 2012.

Now what Shopify is expecting revenue in the range of $164 million to $166 million in the third quarter, which would represent a 65.6% year-over-year increase at the midpoint. That growth is likely to spur investor sentiment even higher in the coming months, but just remember that Shopify's current share price already has the expectation's for the company's future growth already baked into it to a large degree.

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To: IceHawk who wrote (3)9/14/2017 6:28:05 AM
From: unclewest
   of 17
Just had a hunch and found your thread.

Thanks for starting it.

I bought SHOP shares in April and May based on the MF recs at that time.


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From: IceHawk9/18/2017 3:49:09 PM
   of 17
Why Shopify Inc. Is 1 Growth Stock You Don’t Want to Miss

Haris Anwar | September 18, 2017 | More on: SHOP SHOP

Making money in the stock market is very simple: you buy a stock that’s trading at the right price.

But then come complex strategies and charts that often terrify people who generally think investing is only for geeks.

As an investor, I always recommend using common sense and easy-to-understand strategies. One easy way to make money in the market is to find a sector that is showing explosive growth.

The next step is to identify leading players in this growth industry. That company must have a wide moat with the ability to fund its growth. It seems an impossible task, but it’s achievable. Here is an example of such a company.

Shopify Inc.

Shopify Inc. (TSX:SHOP)(NYSE:SHOP), a Canadian e-commerce platform provider, has got all the traits that a growth company possess. It belongs to a sector which is seeing an exceptionally higher growth as customers make their purchases online. This trend is only to grow as both companies and consumers seek innovative ways to cut costs.

Shopify’s business model is sticky, because the company solves many problems that a small merchant faces while operating an online store. From creating a website to providing e-commerce plug-ins, marketing, accounting and inventory management, Shopify can take care all of this.

From just over US$50 million in 2013, Shopify’s sales jumped to US$389 million last year. In the second quarter, sales were US$151.7 million — a 75% increase from the comparable quarter in 2016.

Is Shopify a true growth stock for your portfolio?

So, what’s the future of this remarkable technology company? The biggest concern that new investors have when they consider Shopify stock is if they’ve already missed the boat after seeing over 150% gains in its stock value only this year.

I think the market opportunity for Shopify is huge. Shopify told investors in the second quarter that its merchant network has already surpassed 500,000 businesses in 175 countries against its targeted market of 10 million merchants.

Merchant growth in the second quarter, for example, was global with a 56% increase in North America, 82% in Asia, 168% increase in South America, and 70% increase in Africa.

Shopify is not making a profit yet. It’s investing heavily to continue expanding its network of merchants.

For long-term investors, Shopify stock provides a great opportunity to charge up their portfolios with this reliable technology name.

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From: IceHawk9/18/2017 3:58:47 PM
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Shopify Introduces Shopcodes, QR Codes Connected Directly to eCommerce Items

Sep 17, 2017 by Michael Guta

The easier you make the checkout process for customers when they shop online, the more they are likely to buy from you — or so the people at Shopify believe. Shopify (NYSE:SHOP) recently introduced Shopcodes, a service taking customers to a product or cart in your Shopify store when they scan a QR code.

The choice to use QR code is in great part driven by Apple’s decision to finally add QR reading to its camera in June of 2017. Apple’s influence in the mobile segment is undeniable, and the company’s decision has prompted marketing platforms for brands, companies and developers to do the same.

Shopify took a similar path, and with Shopify Shopcodes it wants to make mobile shopping much easier than before. What makes it different is the QR codes can only be generated within Shopify stores, and they are only used for shopping.

Creating and Using Shopify ShopcodesCreating the QR codes is as simple as downloading the app and going to the dashboard in Shopify. When you create the code, you can customize it with links to a product’s page or the shopping cart page.

You can add discounts to the Shopcodes or make changes through the app dashboard with additional information or promotions. And each transaction can be tracked through your Shopify Analytics dashboard to see where the traffic and sales are coming from.

Once the codes are created, they can be used in the digital or physical world. You can download the codes, print them and place them on products, offline ads, or windows in your brick and mortar store. When customers scan them, they can find out more about your store, products or be directed to your Shopify store.

Shopcode is one more tool to make your small business more accessible to your customers. In highlighting one of its features, Corey Pollock, Product Manager at Shopify, said on the company blog, “Instead of manually typing in your website’s URL on their mobile devices, shoppers can be taken directly to the product in your Shopify store instantly.”

If you are a Shopify merchant, you can get the Shopcodes app for free through the Shopify App Store.

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From: IceHawk9/28/2017 6:33:56 PM
   of 17
HubSpot Inc (HUBS) Stock Soars on Shopify Tie-Up

Karl Utermohlen InvestorPlace September 27, 2017

HubSpot Inc (NYSE: HUBS) and Shopify Inc (US) (NYSE: SHOP) have teamed up on an e-commerce partnership.

HubSpot Inc (HUBS)

The two companies have teamed up in order to integrate Shopify’s customers, its data, orders and products into the HubSpot platform. HubSpot’s capabilities will be brought to Shopify’s online merchants.

“In an era when almost every business sells something on its website, Shopify has been an invaluable partner to HubSpot. With this new integration, we’re taking that relationship to the next level,” said Brad Coffey, Chief Strategy Officer at HubSpot. “The combined power of Shopify and HubSpot gives our shared customers the tools they need to deliver even more sophisticated ecommerce marketing.”

Shopify customers will be able to see online sales in HubSpot as deals, which will be able to organize and analyze purchasing patters and measure customer lifetime value. The deal will also bring e-commerce marketers complete specific tasks, such as sending transactional emails and building workflow around shopping carts.

“We’re looking forward to deepening our relationship with HubSpot in pursuit of our shared mission to give all companies, big or small, access to the tools they need to start up and scale up,” said Tobias Lütke, founder and CEO of Shopify.

The integration between the two companies is currently available in beta, and will eventually be rolled out fully.

HUBS shares surged 10.7%, while SHOP stock grew 1.9%.

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From: IceHawk10/2/2017 7:26:22 PM
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Shopify Inc (SHOP): How Does It Impact Your Portfolio?

Casey Hall Simply Wall St.October 2, 2017

View photos
If you are a shareholder in Shopify Inc’s ( NYSE:SHOP), or are thinking about investing in the company, knowing how it contributes to the risk and reward profile of your portfolio is important. The beta measures SHOP’s exposure to the wider market risk, which reflects changes in economic and political factors. Different characteristics of a stock expose it to various levels of market risk, and the broad market index represents a beta value of one. Any stock with a beta of greater than one is considered more volatile than the market, and those with a beta less than one is generally less volatile.

View our latest analysis for Shopify

What is SHOP’s market risk?
Shopify’s five-year beta of 1.2 means that the company’s value will swing up by more than the market during prosperous times, but also drop down by more in times of downturns. This level of volatility indicates bigger risk for investors who passively invest in the stock market index. According to this value of beta, SHOP may be a stock for investors with a portfolio mainly made up of low-beta stocks. This is because during times of bullish sentiment, you can reap more of the upside with high-beta stocks compared to muted movements of low-beta holdings.

Could SHOP's size and industry cause it to be more volatile?
With a market capitalisation of CAD $11.54B, SHOP is considered an established entity, which has generally experienced less relative risk in comparison to smaller sized companies. However, SHOP operates in the internet software and services industry, which has commonly demonstrated strong reactions to market-wide shocks. Therefore, investors can expect a low beta associated with the size of SHOP, but a higher beta given the nature of the industry it operates in. It seems as though there is an inconsistency in risks from SHOP’s size and industry. There may be a more fundamental driver which can explain this inconsistency, which we will examine below.

NYSE:SHOP Income Statement Oct 3rd 17

Can SHOP's asset-composition point to a higher beta?
During times of economic downturn, low demand may cause companies to readjust production of their goods and services. It is more difficult for companies to lower their cost, if the majority of these costs are generated by fixed assets. Therefore, this is a type of risk which is associated with higher beta. I examine SHOP’s ratio of fixed assets to total assets to see whether the company is highly exposed to the risk of this type of constraint. Considering fixed assets account for less than a third of the company's overall assets, SHOP seems to have a smaller dependency on fixed costs to generate revenue. Thus, we can expect SHOP to be more stable in the face of market movements, relative to its peers of similar size but with a higher portion of fixed assets on their books. However, this is the opposite to what SHOP’s actual beta value suggests, which is higher stock volatility relative to the market.

What this means for you:

Are you a shareholder? You may reap the gains of SHOP's returns during times of economic growth by holding the stock. Its low fixed cost also implies that it has the flexibility to adjust its cost to preserve margins during times of a downturn. I recommend analysing the stock in terms of your current portfolio composition before deciding to invest more into SHOP.

Are you a potential investor? Before you buy SHOP, you should take into account how their portfolio currently moves with the market, in addition to the current economic environment. SHOP may be a valuable addition to portfolios during times of economic growth, and it may be work looking further into fundamental factors such as current valuation and financial health.

Beta is one aspect of your portfolio construction to consider when holding or entering into a stock. But it is certainly not the only factor. Take a look at our most recent infographic report on Shopify for a more in-depth analysis of the stock to help you make a well-informed investment decision. But if you are not interested in Shopify anymore, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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From: IceHawk10/4/2017 5:00:48 PM
   of 17
Shopify shares fall 11% as short seller calls firm a 'get rich quick scheme' ... Citron Research says most of the businesses Shopify works with aren't legitimate

CBC News Posted: Oct 04, 2017 12:28 PM ET Last Updated: Oct 04, 2017 4:17 PM ET

Shares in Shopify were down by as much as 11 per cent on Wednesday after a high-profile American short seller said most of the 500,000 businesses the company works with aren't legitimate.

Citron Research's Andrew Left released a video Wednesday morning alleging that Ottawa-based Shopify's hype is unsustainable, and argues the stock should be worth half what it is.

Shopify makes money by helping small and medium-sized businesses sell their products and services online, by handling all of the back end logistics of payments, inventory and web design via a cloud-based service.

Since going public on the TSX in 2015, the stock has more than doubled this year, to become one of Canada's largest technology companies.

But in his video and accompanying website, Left alleges that most of the company's customers aren't legitimate businesses, but rather simply people who have been sold dubious "business opportunities" built around reselling, which goes against Federal Trade Commission rules.

"They are not selling them to business owners," Left said of the websites. "They are selling them to people as opportunities to get rich quick."

Shopify is "a company that has mastered the good old get rich quick scheme," Left said, saying he can't account for as much as 90 per cent of the company's customer base.

"This is not an $11-billion company," Left said. "This needs to get completely looked at by the FTC and completely looked at by Wall Street."

He also accuses the company of paying bloggers and other online influencers to produce content favourable to Shopify without disclosing that relationship.

Shopify did not reply to a request for comment by CBC News. Trading volume in the company's shares was about twice as much as normal on the stock market in Toronto.

Left is what's known as a short seller, which means he makes money by betting against the performance of stocks that he thinks are overvalued. According to data compiled by Bloomberg, just over four million shares in Shopify are currently held by short sellers, about three per cent of the total. But that ratio has doubled since the middle of August.

Left rose to prominence in 2015 when he went public with allegations that drug company Valeant was fudging its numbers.

The rise and fall of Valeant PharmaceuticalsThe Montreal based drug maker was the most valuable company in Canada at the time, but has since lost more than 90 per cent of its value.

Other high profile Citron Research bets, however, have been much less successful, including attempts to trade against chip maker NVIDIA and car company Tesla.

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To: IceHawk who wrote (9)10/5/2017 10:15:43 AM
From: ggamer
   of 17
Not sure why the company management is not our defending the company? I am a user of this company for the past year and I have been very happy with their product and service. They have extremely knowledgeable and friendly reps and every day their are trying to make their product better. I bought more shares yesterday but I am disappointed that the company is not out in media defending themselves. Unless I missed it.

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From: IceHawk10/5/2017 12:00:57 PM
   of 17
Shopify fires back after short-seller’s attack


The Shopify sign is seen at its Toronto offices.



Shopify Inc. has fired back a day after an American short-seller attacked the Ottawa e-commerce software company's business model and marketing practices and said the stock was vastly overvalued, causing the stock to plunge.

"We vigorously defend our business model and stand resolutely behind our mission and the success of our merchants," the company said in a brief statement on its website that did not directly address the accusations in a note and video posted Wednesday by Beverly Hills, Calif.-based Citron Research.

Shopify stock was trading down about 4 per cent on the New York Stock Exchange just before noon. The shares fell 11 per cent the day before.

Citron's managing editor Andrew Left, who is shorting Shopify stock, alleged Shopify's business was "dirtier than Herbalife" and said the Ottawa-based company had "mastered the good ol' get-rich-quick scheme." Herbalife is a multilevel marketing company that sells nutritional and weight-loss products, and which agreed to pay $200-million (U.S.) in a settlement with the U.S. Federal Trade Commission (FTC) after being accused of pyramid-scheme practices.

Mr. Left – who has been called the "the shock jock of short -sellers" because of his incendiary attacks on publicly traded companies whose stocks he has shorted – commended Shopify's technology, which enables merchants to set up and run online stores over the Internet. But he said Shopify's "dirty little secret" is an affiliate marketing program that allows third-party promoters to earn commissions for persuading new merchant customers to sign up.

Affiliate marketing is a common online selling practice, giving individuals and businesses a cut of money made from online purchases if they've helped direct the buyer to that product, typically through reviews or blogs. Some affiliate marketers are mainstream celebrities or social-media personalities and established companies including Amazon also use the practice

However, affiliate marketing has drawn recent scrutiny from the FTC, which warned in a blog post last month that many such marketers put out "exaggerated claims or misleading information to get people to click. They may say anything to get you to click on their ad because they have an incentive – getting paid."

Shopify offers its 13,000 affiliate partners the equivalent of the first two months of a new customer's monthly fee once new merchants they refer sign on to its platform. Customers pay monthly subscription fees starting at $29 to use Shopify's cloud-based software .

Mr. Left, whose note was long on accusations but short on detail, also alleged that Shopify improperly promotes the notion that its merchants can become millionaires, that third-party affiliates do not disclose they are compensated by Shopify and that most of Shopify's customers are not true merchants but "people who are buying a system" to make money online. He argued those and other practices would face FTC scrutiny.

Mr. Left also claimed Shopify stock was worth just over half of its value as of Tuesday. Shopify has been a top performer on both the Toronto Stock Exchange and the New York Stock Exchange, nearly tripling in value in the past year and trades at a substantial premium to other subscription software providers.

In its statement, Shopify said it is helping to enable the growth of entrepreneurship by making it as easy as possible "to enable anyone, anywhere, to build, grow and scale a business." It noted more than 131 million consumers have made purchases from a Shopify store in the past year. But Shopify did not otherwise address the allegations raised by Citron and Mr. Left.

National Bank of Canada analyst Richard Tse said in a research note "we can't unequivocally rule out that this negative report will not surface some regulatory scrutiny even if we think it's remote." He said any issues would stem from a group of "transient subscribers who do not represent a meaningful portion of value for Shopify."

However, he said "in the short-term, there's little doubt it will weigh on the stock despite what we believe to be an unchanged fundamental outlook," noting Shopify's annualized revenue per merchant customer has been rising and that the business appears to be on track to meet its target of becoming profitable by the fourth quarter. The weakness in the stock "opens up a window for long term investors" to buy, he said.

Mr. Left has made a name for himself targeting publicly traded firms he accused of engaging in fraudulent tactics, being overvalued or both. His best-known target was Valeant Pharmaceuticals International Inc., which he compared to Enron Corp. in 2015 before its rapid descent.

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