Investors found many good reasons to like (NYSE: SHOP) in recent weeks. The e-commerce platform specialist reported solid operating results to start fiscal 2023, and its earnings prospects have improved with its pivot away from the costly shipping-logistics business. Shares responded by soaring in the wake of management's early May earnings update.
Yet investors might still be facing sticker shock from Shopify's pricey valuation. Let's look at a few reasons shares seem like a good buy, even following the latest rally.
Wall Street's attention focused on Shopify's strategic pivot away from the logistics business, mainly because this move is likely to accelerate the company's return to profitability. Executives admitted to overextending themselves on spending in 2022, and the sale of the logistics platform represents an aggressive shift toward a simpler, more efficient business.
Source Fool.com