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   Technology StocksShopify Inc (SHOP: NASDAQ) SHOP.TO


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To: Ron who wrote (27)7/26/2020 1:32:46 PM
From: Glenn Petersen
   of 55
 
Only Amazon takes in more money online, dollar-wise, than Shopify’s sites, which in aggregate brought in more than $60 billion in 2019, $20 billion more than the year before.

An amazing company. Thanks for posting that piece.

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From: Glenn Petersen7/26/2020 2:02:06 PM
   of 55
 
Is a Beat in Store for Shopify (SHOP) This Earnings Season?
Zacks Equity Research
July 24, 2020

Shopify Inc. SHOP is slated to report second-quarter 2020 results on Jul 29.

The company refrained from providing second-quarter guidance citing COVID-19 induced uncertainties prevailing in the market.

The Zacks Consensus Estimate for revenues is currently pegged at $502.97 million, suggesting growth of 38.95% from the year-ago quarter.

The Zacks Consensus Estimate for bottom line is pegged at break-even, which narrowed from a los
s of one cent in the past seven days. The company reported earnings of 14 cents in the prior-year quarter.

Notably, the company has surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 169.34%.

Factors to Note

Momentum in online sales triggered by the coronavirus pandemic is expected to have driven Shopify’s second-quarter performance. Moreover, the company launched Shop — a shopping assistant app — with an aim to aid merchants enhance customer experience and sales on the platform.
Shopify Inc. Price and EPS Surprise


View photos
The company is also anticipated to have gained from introduction of contactless payment hardware for Canadian retailers using new point of sale (POS) system, Shopify POS. This includes the Shopify Tap & Chip Card Reader, Shopify Tap & Chip Case and Shopify Retail Kit.

Moreover, launch of new POS system to help integrate online and in-person sales in a bid to aid merchants in staying abreast of evolving commerce practices in the wake of tough retail environment is noteworthy.

Incremental adoption of these aforementioned new services is likely to have aided merchants in expanding business with engaging experience. This is expected to have contributed to top-line growth in the second-quarter performance and helped the company expand merchant base.

Further, robust adoption of Shopify’s easy-to-use upgrades and new merchant-friendly applications is anticipated to have bolstered adoption of Shopify Payments, Shopify Capital and Shopify Shipping solutions in the second quarter. This, in turn, may get reflected in the to-be-reported quarter’s results.

Markedly, an expanding merchant base has been instilling confidence in the stock. Shares of Shopify have surged 127% year to date, outperforming the industry’s rally of 15.2%.

Besides, roll out of new solutions like Shopify Balance and Shop Pay Installments, which are aimed at enabling merchants to offer seamless payment options to customers, is expected to get reflected in the second-quarter results.

Particularly, Shopify’s partnership with CoinPayments to bring the latter’s crypto payments processing platform to all its merchants and boost adoption of digital currency payments, deserves a special mention.

Notably, Shopify has been working on extending language capabilities beyond English. The focus on local languages might have helped the company in strengthening international foothold. These initiatives to reinforce presence in the international market may have contributed to the second-quarter performance.

However, Shopify’s increasing investments on product development, fulfillment network, infrastructure and international expansion to maintain competitive position in the e-commerce market are likely to have weighed on the second-quarter profitability.



View photos
Strategic Partnerships in Q2

During the second quarter, Shopify partnered with Chipotle to launch the Chipotle Virtual Farmers' Market. Markedly, Shopify’s platform will be utilized by farmers in the Chipotle supply chain to deliver enhanced versions of their e-commerce portals.

Moreover, the company collaborated with Walmart WMT in a bid to enable merchants to sell products on Walmart.com. The move is a testament to the company’s increasing efforts to bolster merchant base, pertaining to small and medium-sized businesses, with multiple channel options. (Read More)

The company also announced partnership with Facebook to help businesses create Facebook Shops — a new and free tool that aids merchants create customized online storefront for Facebook and Instagram.

finance.yahoo.com

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To: Glenn Petersen who wrote (28)7/26/2020 2:23:37 PM
From: Ron
   of 55
 
Nice to see some innovation in the sector-- give the Amazon behemoth some competition and
apparently help more small business firms as well.

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To: Ron who wrote (30)7/26/2020 2:46:22 PM
From: Glenn Petersen
1 Recommendation   of 55
 
I agree. I almost always use Amazon when I order online, although over the last year it has felt less user friendly. They have been so focused on growth that it sometimes seems that they have lost their concern for their merchants, customers and employees. I do appreciate the fact that the pandemic disrupted and strained their systems and personnel, particularly in logistics. Hopefully, they'll take a step back and reassess their business practices, particularly as they relate to their third party merchants, and the handling and treatment of their logistics personnel.

I was no aware of Shopify's full back story. I suspect that they have a lot of growth ahead of them.

If I had to bet, and I may do so tomorrow, I suspect that they will beat the estimates of Wednesday.

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From: Glenn Petersen7/29/2020 8:27:18 AM
1 Recommendation   of 55
 
Shopify shares jump 7% after hot e-commerce company says second-quarter revenue increased 97%

PUBLISHED WED, JUL 29 20207:19 AM ED0
UPDATED 13 MIN AGO
Thomas Franck @TOMWFRANCK
CNBC.com



Employees at Shopify’s headquarters in Ottawa.
Chris Wattie | Reuters
--------------------------------------

Popular stock Shopify jumped on Wednesday after the Canadian e-commerce company beat estimates for second-quarter revenue as more brick-and-mortar retailers used its online platform during coronavirus-led lockdowns.

Shopify shares, which investors have bought en masse amid the Covid-19 pandemic, have rallied more than 100% over the last six months as consumer and business owners shift commerce online to slow the spread of the disease.

Shares rose 7.2% in premarket trading following the results, further extending Shopify’s lead over Royal Bank of Canada as the country’s largest company by market value.

That uptick in demand for e-commerce platforms accrued to Shopify in the second quarter. The company reported Wednesday morning that second-quarter revenue rose 97% to $714.3 million from a year earlier, beating the average analyst expectation of $513.83 million, according to Refinitiv IBES data.

“The strength of Shopify’s value proposition was on full display in our second quarter,” Shopify Chief Financial Officer Amy Shapero said in a release on Wednesday. “We are committed to transferring the benefits of scale to our merchants, helping them sell more and sell more efficiently, which is especially critical in this rapidly changing environment.”

Shopify said in its earnings release that the ongoing effect of the Covid-19 pandemic has accelerated the shift of consumer purchasing habits to e-commerce. New stores created on Shopify grew 71% in the second quarter compared to the first quarter while gross merchandise volume popped 119% year over year.

The company had already turned heads on Wall Street prior to its blockbuster earnings report.

Goldman Sachs, which up until Tuesday had rated the Ottawa-based stock at “neutral,” penned a mea culpa earlier this week and upgraded the equity to “buy.” The bank reiterated its recently increased price target of $1,127, which represents more than 14% upside from Tuesday’s close.

“With a unique customer acquisition funnel that has not only found unmatched success in SMB but increasingly the enterprise segment as well, we believe SHOP should be able to sustain hyper-growth for longer than the market expects,” Goldman’s Christopher Merwin wrote on Tuesday.

Reuters contributed to this report.

cnbc.com

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To: Glenn Petersen who wrote (32)8/6/2020 9:17:14 AM
From: Glenn Petersen
1 Recommendation   of 55
 
Shopify rival BigCommerce surges 292% in first day of trading as investor demand in ecommerce remains strong (BIGC)

Matthew Fox
Business Insider
Aug. 5, 2020, 07:09 PM

-- BigCommerce, a Shopify rival that offers an ecommerce platform for online businesses, surged as much as 292% on Wednesday in its first day of trading.

-- Shares of BigCommerce were priced at $24 last night, allowing the company to raise $216 million as it and existing stockholders sell 9 million shares to the public.

-- Within three minutes of trading, shares of BigCommerce were halted due to volatility.

-- BigCommerce trades on the Nasdaq exchange under the ticker symbol BIGC.

-- BigCommerce, a Shopify rival that offers an ecommerce platform as a service aimed at online businesses, surged as much as 292% in its first day of trading on Wednesday.
The Austin, Texas-based company and existing stockholders sold a total of 9 million shares to the public, raising $216 million for BigCommerce.

The initial public offering was initially priced at a range of $18 to $20, but strong investor demand led to a range raise between $21 and $23. It was eventually priced at $24 on Tuesday night.

Shares opened for trading at $67.84, and rose to $79.40 within three minutes before being halted for volatility. The stock then jumped to $91.80 before again being halted due to volatility.

Shares eventually peaked at $93.99, representing a gain of 292% from the IPO pricing of $24.

BigCommerce has more than 60,000 customers across 120 countries. High-profile customers of BigCommerce include Ben & Jerry's, Skullcandy, Sharp, and Sony.

The company has raised more than $200 million, with its last funding round of $64 million being led by Goldman Sachs. Other investors in the firm prior to the IPO include Softbank and GGV Capital.

According to the TheStreet, one big investor in the BigCommerce IPO is private equity firm Tiger Global Management. Tiger indicated that it planned to purchase up to 20% of the shares offered in the IPO.

Investors might be looking for the next Shopify, which operates a similar platform to BigCommerce and has seen its shares jump 173% year-to-date as it benefits from increased online shopping amid the COVID-19 pandemic.

BigCommerce trades on the Nasdaq exchange under the ticker symbol BIGC.

markets.businessinsider.com

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To: Glenn Petersen who wrote (33)8/6/2020 3:33:22 PM
From: Sdgla
   of 55
 
Watching that with interest.

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From: Glenn Petersen8/11/2020 5:28:28 PM
   of 55
 
Before BigCommerce’s 200% IPO pop, Intuit offered $1.5 billion for the software company

PUBLISHED TUE, AUG 11 20201:33 PM EDT
Ari Levy @LEVYNEWS
CNBC.com

KEY POINTS

-- Untuit offered to buy BigCommerce for $1.5 billion about a month before the e-commerce software company’s IPO.

-- BigCommerce opted to go public instead, and the stock jumped over 200% in its debut last week.

-- The stock market is pricing subscription software companies at a premium during the pandemic.
BigCommerce’s stock more than tripled in its market debut last week, marking the biggest IPO pop of 2020 and valuing the software company at close to $5 billion. The rally justified the company’s decision to stay independent.

Just about a month before the IPO, Intuit offered to buy BigCommerce for $1.5 billion, according to people familiar with the matter, who asked not to be named because the talks were confidential. Some BigCommerce leaders wanted to take the deal.

BigCommerce CEO Brent Bellm gambled that, even in the midst of a global pandemic and economic slump, public investors would continue piling into new cloud software stocks. Several subscription software vendors have doubled or even tripled in value this year, benefiting from surging demand for tools that help companies run digital businesses and manage remote workforces.

A BigCommerce spokesperson declined to comment. Intuit didn’t provide a comment.

BigCommerce’s biggest rival, Shopify, has been a Wall Street darling for four years, a stretch during which the stock price has multiplied by over 25-fold and its market cap has jumped to about $120 billion. Both companies provide e-retailers with software for developing their websites, handling payments and dealing with currency conversions. While Shopify is more than 20 times bigger than BigCommerce and still growing much faster, the market appears plenty big for another multibillion-dollar company, particularly as the pandemic pushes more retail online.



Shopify four-year rally
CNBC
------------------------------------

“We believe we are well-positioned to continue to benefit from the macro-economic shift to ecommerce that Covid-19 has accelerated, but revenue may be more variable in the near-term as a result,” BigCommerce said in its IPO prospectus.

Companies commonly file to go public and then field acquisition offers from potential buyers, knowing the clock is ticking to a likely pop. AppDynamics was on the eve of its IPO in 2017, when Cisco jumped in with a $3.7 billion offer. SAP purchased Qualtrics for $8 billion in 2018, just before a planned market debut.

But cloud software stocks are getting such favorable multiples now that SAP is spinning Qualtrics out through an IPO, two years after the acquisition. Datadog reportedly received a $7 billion takeover offer before its IPO last year, and is now valued at almost $23 billion.

High multiples

Were BigCommerce to have taken the deal at $1.5 billion, the company would have been valued at about 11 times revenue, a good multiple historically for a software company growing at 30% annually. At Monday’s close, the public market is valuing BigCommerce at about 44 times sales. That’s rich, but still less than Shopify, which trades for 62 times sales.

Founded in 2009, BigCommerce originally served small businesses, but eventually moved to working with mid-sized businesses and enterprises. Customers include Ben & Jerry’s, Sony and Skullcandy. In its prospectus, BigCommerce names Shopify, Adobe’s Magento unit, Salesforce and WooCommerce (owned by WordPress parent Automattic) as competitors.

Intuit, known mostly for its tax software, has already announced one of the bigger tech acquisitions this year. In February, the company said it was buying personal finance site Credit Karma for $7.1 billion, a deal that’s currently under regulatory review. In June, Intuit said it was raising $2 billion through a debt sale to finance some of the costs of acquiring Credit Karma as well as other purposes including the “possible acquisitions of businesses or assets or strategic investments.”

cnbc.com

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To: Glenn Petersen who wrote (35)8/28/2020 6:43:18 PM
From: y2kate
   of 55
 
Hi Glenn,

What advantages if any does BigC have over Shopify? Do you think that it has the potential for growth that we've seen with Shopify over the past few years? Certainly off to an impressive start!

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To: y2kate who wrote (36)8/30/2020 11:01:01 AM
From: Glenn Petersen
   of 55
 
My preference, and this comes with a lot of caveats, would be SHOP. SHOP's client base is mostly small businesses, while BigC is more focused on mid-sized businesses, which are more likely to eventually set up their own online stores than the mom-and-pop shops.

SHOP is growing at a faster rate.

After BigC's monster week, BigC's valuation (calculated as a multiple of sales) is probably in the same ball park as SHOP.

Personally, I think that both stocks are overpriced (as is the whole market), but I learned a long time ago not to fight the market. In the long run both companies will do well.

Also, keep in mind the fact that the current growth rate in online sales will taper over time.

Retailers are reporting record online sales during the pandemic. But it won’t last forever

PUBLISHED SUN, AUG 30 20209:00 AM EDT
Lauren Thomas @LAURENTHOMAS
Nate Rattner @NATERATTNER
CNBC.com

KEY POINTS

--m At Best Buy, online sales were up 242% during its fiscal second quarter, with people stocking up on electronics and equipment for their home offices.

-- Target, Dick’s Sporting Goods, Lowe’s, Tiffany and Home Depot all reported triple-digit growth online.

-- Will these eye-popping gains stick around? Likely not. And not all e-commerce growth looks the same. Some retailers are finding ways to be more profitable than others.

Retailers are reporting some of the biggest online sales gains in their history thanks to the coronavirus pandemic, which temporarily shut many stores, holed consumers up at home, and pushed more people to the internet to browse and buy groceries, clothes and workout gear.

But will these eye-popping gains stick around? Likely not.

“This growth is definitely going to go down next year,” Forrester analyst Sucharita Kodali said in an interview. “Anybody who has any proclivity to buy online has bought online. Anything they would have needed, they purchased.”

“Right now, we are still operating in an environment where there is social distancing,” she said. “Once things get back to normal, you are going back to the stores.”

Still, even if this is a temporary consequence from the pandemic, it would be hard to simply gloss over these numbers — many of which were triple-digit percentage increases.

At Best Buy, online sales were up 242% during its fiscal second quarter, with people stocking up on electronics and equipment for their home offices. Target, Dick’s Sporting Goods, Lowe’s, Tiffany and Home Depot all also reported triple-digit growth online. Gap Inc.’s total e-commerce sales soared 95% from a year ago, and within that it said its Old Navy business surged 136% online.

“If I were to leave you with one thing, we are digitally led,” Gap Chief Executive Sonia Syngal said in a phone interview Thursday. “To have a quarter where 50% of our business came from online, at our scale, we are really excited to build from this.”



Even some companies that didn’t disclose exact growth figures talked about robust gains. During the latest quarter, beauty retailer Ulta said its digital business was up more than 200%; Free People and Anthropologie owner Urban Outfitters said it saw “strong double-digit growth” online; while Coach and Kate Spade parent Tapestry also noted its web sales skyrocketed by a triple-digit rate.

Not all of this e-commerce growth hits the bottom line in the say way, though.

Abercrombie & Fitch and Dick’s Sporting Goods managed to grow e-commerce revenue while also boosting profitability — a notable achievement considering digital transactions come with added expenses for companies like handling returns, packaging and shipping. When a customer walks into a shop to buy something, those are the sales that tend to be the most profitable.

Retailers are cutting costs elsewhere during the pandemic, however, making this shift possible. They are cutting jobs and employees’ hours, closing underperforming stores and aiming to use less promotions.

Abercrombie CFO Scott Lipesky told CNBC earlier this week: “As long as you can reduce fixed costs, this shift to digital can be profitable.” During the latest quarter ended Aug. 1, Abercrombie’s store and distribution expenses were down almost 18%, while marketing costs dropped 16%.

And Tapestry’s gross profit margins for the period ended June 27 improved at each of its brands due, in part, to fewer markdowns on bags and jewelry. The company said it hopes to keep margins strong, too, by keeping inventory levels lighter. As one example, the Coach brand will have 50% less handbags and items for customers to choose from this upcoming holiday season, it said.

Gap swung to a quarterly net loss, though, because it said it faced higher costs shipping inventory to customers’ homes from its stores.



A number of retailers including Nordstrom and Target have highlighted to analysts and investors just how much their digital sales have grown from a year ago — to become a much larger portion of their businesses.

Analysts expect some will hold on to this trend longer than others, with those that had been investing online before the global pandemic struck faring the best.

“Retailers that have adapted quickly and that invested in e-commerce are reaping the benefits,” Retail Metrics Founder Ken Perkins said in a note to clients.

“Curbside pickup, same-day delivery [and] contactless transactions are king in this environment,” he said.

—CNBC’s Amanda Lasky contributed to this reporting.

cnbc.com

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