Shopify (TSX:SHOP) Stock: Earnings Report Analysis

INNO

In this post, I talk about the Shopify stock analysis series that I have been doing on Youtube. I review the company, history of events, significant announcements, earnings reports, and more. As Canada’s largest company on the TSX right now and an avid tech investor, I created this series to document Shopify’s road to success (or failure if it turns out to be like a Blackberry story…which is not over yet).

Shopify stock has been on a tear recently after dropping down to $450 during the initial COVID fear. Today it is trading at around $1100CAD. For most investors, these are very dangerous levels because Shopify continues to hit all time highs without the business to back up the valuation.

Currently trading at around a P/E ratio of 3000 and P/S ratio of 45, this is an expensive buy with A LOT of growth priced in. In this video, I do a Shopify stock analysis and talk about the bullish case for Shopify in the long term even though I am currently bearish in the short term. I share my thoughts on one business vertical that they will be tackling in the near future which is HIGH margin and can propel them to the next level.

I also cover Shopify Fulfillment which is another vertical in the ecommerce space that is going to draw more merchants to their platform. Fulfillments will likely be a loss leader because shipping is expensive. But with the extra revenue from subscriptions, payments and other services, Shopify stands to make up for these losses and more.

I also share my thoughts on Shopify Capital in the following video which not many people know about unless they are a merchant or a serious investor. Shopify Capital gives out loans to merchants quicker than a bank. The interest rates might be a little higher but in the world of business, first mover advantage is very important. You may have heard the saying “time is money” this is essentially why people are willing to pay more interest in order to get capital quicker.

I currently do not have Shopify shares and performing a Shopify stock analysis for entertainment and a way for me to share my thoughts.

 

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