Down 80%, Is Shopify Stock a Bear Market Buy?
Down 80% year to date, Shopify's (NYSE: SHOP) decline has far outpaced that of the Nasdaq Composite index, which has "only" fallen 33% in the same period. The beleaguered e-commerce platform hasn't held up well after the COVID-19 pandemic. And while its unique business model gives it an economic moat, slowing growth and a high valuation should give investors pause.
Founded in 2004 and going public in 2015, Shopify is an e-commerce platform designed to help small businesses create customized online stores where they can sell items both online and in-person. It differentiates itself from large third-party online marketplaces such as Amazon by focusing on merchants instead of the end consumer.
Like most e-commerce companies, Shopify performed exceptionally well during the COVID-19 pandemic, which led to booms in both online shopping and online entrepreneurship. However, now that the crisis has eased, investors are beginning to reevaluate the company's value.
Source Fool.com
