Monday, August 20, 2018

Shopify: Competition Knocking On The Expensive Door

Shopify recently hit a double top around $175.
Adobe Systems entered the sector with the purchase of Magento to compete for the e-commerce platform of large brands.
The alarming rate of sales deceleration is a major red flag for an expensive stock trading at a forward P/S multiple of 10x.
One of the ramifications of a massive market valuation is that competitors want a piece of the action. Shopify (SHOP) faces this exact scenario as investors rewarded the company with P/S multiple of 10x '19 revenue estimates.
Read the full article for more details. 
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