Is It Too Late to Buy Shopify Stock?
Shopify (NYSE: SHOP) has been on a roller-coaster ride on the stock market so far in 2023, as shares of the e-commerce platform provider have pulled back since the release of its fourth-quarter 2022 results on Feb. 15. There were concerns that the company's growth is set to slow down this year.
Shares of the company sank big time after the earnings report, which wasn't surprising, as Shopify needs to exceed Wall Street's growth expectations to justify its rich valuation. After all, Shopify is trading at 10.3 times sales, well above the S&P 500's price-to-sales ratio of 2.3. However, the stock is showing some signs of life this month and helped investors recoup some of the losses it recorded in February.
Shopify's stock has jumped 14% in March so far, which doesn't seem surprising, as savvy investors may have seen an opportunity in its drop and bought more shares. Also, the stock is up 50% over the past six months.
Source Fool.com
