Why I'm Still Bearish on Shopify Stock
Shares of Shopify (NYSE: SHOP) have risen more than 20% this month as investors have been encouraged by the company's strong growth in revenue and gross profit. But investors shouldn't get too excited. There's good reason to believe the stock's recent rebound could be hot air.
Sure, the e-commerce platform company continues to execute well and management seems to be making a lot of good decisions. The problem, however, is the stock's valuation -- the same problem I've complained about in several articles about the stock over the last year. The company is simply far from living up to its market capitalization of nearly $93 billion at the time of this writing.
For its second quarter, Shopify once again delivered strong growth in an uncertain market. The quality of its platform, its go-to-market strategy, and macro tailwinds in e-commerce overall continue to help drive growth for the company. Shopify's second-quarter revenue rose 21% year over year, or 25% when you adjust for the sale of its logistics business by removing revenue from this business in the year-ago period.
Source Fool.com
Shopify Inc Stock
We see a rather positive sentiment for Shopify Inc with 6 Buy predictions and 1 Sell predictions.
With a target price of 80 € there is a slightly positive potential of 19.44% for Shopify Inc compared to the current price of 66.98 €.
