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. Disclosure: No position mentioned. Please review the disclaimer page for more details.