Is Shopify a Steal of a Deal?
The economy is facing some serious obstacles. Inflation is chipping away at discretionary income, and a return to normal in the world means people aren't exclusively shopping online anymore. Those are just a couple of the headwinds that could weigh down Shopify's (NYSE: SHOP) business in the near term.
But are investors overreacting? The once-promising e-commerce stock has cratered 74% since the start of the year. Although it's been a bad year for the S&P 500, which has fallen more than 20% already, Shopify has been one of the worst-performing stocks out there as of this writing. So is it now an incredible deal, or is there a genuine reason to avoid it at all costs?
Although Shopify is facing some challenges heading into a potential recession, the global e-commerce market is still growing. Analysts from Grand View Research project it will be worth more than $27 trillion in 2027 -- nearly three times the $10.4 trillion it was worth in 2020.
Source Fool.com
