1 Magnificent Growth Stock Down 74% to Buy Now and Hold Forever
Last week, Shopify (NYSE: SHOP) reported better-than-expected financial results for the fourth quarter. Revenue increased 26% to $1.7 billion, and the company returned to non-GAAP profitability with adjusted earnings of $0.07 per share. However, while those numbers beat analysts' projections, they still look bad compared to the prior year, when revenue rose 41% and Shopify reported non-GAAP earnings of $0.14 per share.
Unfortunately, management also provided grim guidance for the current quarter. Revenue growth is expected to fall into the high teens, which implies a sequential decline in sales. Meanwhile, operating expenses are expected to rise, chewing away at already-weak profitability. That was the last straw for some investors, and the stock plummeted in the wake of the earnings report. In total, Shopify's share price has dropped 74% during the ongoing bear market.
Fortunately, that creates a perfect buying opportunity for patient investors. Here's why.
Source Fool.com
