Why Investors Were Buying What Shopify Was Selling Today
Many Shopify (NYSE: SHOP) investors spent Thursday's trading session weighing two very different new analyst reports on the company. As a result its share price see-sawed quite a bit during the day, at one point dropping 5% below Wednesday's close before recovering to a slight 0.4% gain. To say that recent opinion on this stock is divided is a real understatement.
The day didn't begin auspiciously for Shopify analyses. Before market open, UBS initiated coverage on the e-commerce facilitator with a firm sell recommendation at $30 per share; it currently trades close to $40.
The Swiss bank's analyst Kunal Madhukar is concerned that consensus estimates for the company don't take into account a very possible recessionary environment in the first quarter of next year. He also pointed out that Amazon is competing effectively in the company's space, and could be a threat to Shopify in the long run.
Source Fool.com
