Shopify Just Forecasted Its Slowest Growth Ever -- What It Means for Investors
Shares of e-commerce platform company Shopify (NYSE: SHOP) trade around $42 per share as of this writing, far below their highs of $169 per share. But the price per share tells you little about whether it's cheap or expensive for investors today. To understand the actual value, investors need to know the total value of all the shares and compare that to the fundamentals of the business.
Hopefully that doesn't sound too intimidating, because in this article, I'm going to explain Shopify's slowing growth in the context of the stock's value -- helpful in determining whether the stock is a buy today. And I believe it can all be discussed simplistically.
One share of Shopify may cost about $42. But the company ended 2022 with almost 1.3 billion shares total. Doing the math gives you the total value of the company -- the market capitalization. Therefore, Shopify's market cap is about $54 billion.
Source Fool.com
