Out Fox The $treet

Shopify reported a mixed quarter with solid revenue growth, but the company missed analyst estimates. The e-commerce platform completed a 10% staff reduction but still plans to grow employees for the year. The company forecasts more operating losses in the 2H of the year, highlighting how the business was mismanaged following a period of strong growth. The stock isn't appealing at 6x sales with large operating losses, but Shopify appears to have bottomed at $30. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   How a stock trades after disappointing results is just as important as the actual results in the short term.  Shopify  ( NYSE: SHOP ) has had a bad week with discussions of major layoffs and a big  Q2'22 earnings miss , yet the stock held prior lows. My  investment thesis  is a lot more constructive on the stock following the kitchen sink quarter, but the stretched valuation...

  Shopify completed a 10-for-1 stock split this week. The e-commerce platform finds the stock trading at 52-week lows despite forecasts for 20% to 30% growth rates going forward. The stock valuation is far more reasonable at 4x EV/S, but the retail shakeout needs to end before investing here. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   Shopify ( NYSE: SHOP ) shareholders found out the hard way this week that stock splits aren't much more than financial gimmicks. After several large cap tech companies successfully split shares in the last year, the e-commerce platform  executed a large share split and the stock has continued on to recent lows. My investment thesis is more Neutral on Shopify until the retail shakeout ends, but the stock valuation is definitely more appealing here with the stock down over 80% from the highs. Read the full article on Seeking Alpha.  Disclosure: No positio...

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.   

Shopify (SHOP) has done everything to deserve dropping off an analysts Best Ideas list. The company recently sold shares in a secondary offering and has a new CFO, but the prime reason to avoid the stock now is a completely different reason.