Shopify Removed Fulfillment From Its Ecosystem. Is the Stock Still a Buy?
Shopify (NYSE: SHOP) just announced its earnings for the first quarter of 2023, and it probably represented a turning point. In the report, the company announced its exit from the fulfillment business, selling most of its logistics business to supply chain management company Flexport.
Even though Shopify will hold a stake in Flexport and make it the preferred logistics partner, the news profoundly changed the investment thesis for the software-as-a-service (SaaS) stock. Investors reacted by taking the stock 24% higher in the following trading session.
Still, many shareholders (including myself) felt the fulfillment business strengthened Shopify in the long run. Hence, the question for shareholders is whether the exit from logistics will help the company longer term.
Source Fool.com
Shopify Inc Stock
Currently there is a rather positive sentiment for Shopify Inc with 5 Buy predictions and 0 Sell predictions.
As a result the target price of 75 € shows a positive potential of 35.53% compared to the current price of 55.34 € for Shopify Inc.
