Hi there,
Dan just answered a question about SHOP on Friday - here is what he had to say:
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SHOP at these price levels, at least for the aggressive investor, is pretty solid. In my opinion, buying at these levels won’t disappoint investors 5 years down the road. However, Shopify is not for investors with low, even medium risk tolerance. There could still be significant pullback left. So, investors may want to avoid it if they think they’d panic sell the stock on more weakness, or at the very minimum average into a position.
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I'd agree with his response here. SHOP has proven to be a buy anytime it has seen a meaningful pullback. This being said, it still remains quite expensive at 44 times forward sales. This is well above its historical averages. However, so long as the tech industry remains strong - Shopify is worthy of these premiums given it is ideally situated to take advantage of eCommerce and is expected to grow revenue by ~50% annually.
As Dan mentions however, this is not for those with a lower risk profile.
Of note, I am long SHOP
Mat