Gambling on Shopify because....

Submitted by sanjaypark t3_114tap1 in wallstreetbets

So, was having dinner with my wife and her boyfriend and he brought up some exponentially degenerate points about Shopify...

It's been one of the best performing stocks over the past few years and is a great investment for anyone looking to capitalize on the growth of e-commerce. Chart doesn't lie and it's only looking bullish.

Here are some reasons my wife's bull brought up:

  1. Explosive Growth: Shopify's business has grown at a rapid pace in recent years, with revenue nearly tripling from $673 million in 2018 to $1.58 billion in 2020. The company continues to expand its market share, which has helped to drive the stock price up significantly.
  2. Increasing Adoption of E-commerce: The shift to online shopping has been accelerated by the pandemic, and this has been a boon for e-commerce companies like Shopify. With more businesses shifting to online platforms, Shopify is in a great position to capitalize on this trend.
  3. Diversification: Shopify is a diversified company, providing e-commerce services, point-of-sale solutions, and payment processing. This diversification has helped to mitigate the risks associated with being overly dependent on any one product or service.
  4. Strong Financials: Shopify has a solid financial foundation, with a strong balance sheet and consistent revenue growth. The company is also profitable and has a low debt-to-equity ratio.
  5. Strong Ecosystem: Shopify has created a strong ecosystem for merchants, with a wide range of apps and services available to help businesses optimize their e-commerce operations. This has helped to build a loyal customer base that is likely to continue to use the platform for many years to come.

Also, the Shopify team is composed of experienced professionals and experts in the e-commerce industry. The CEO and founder, Tobias Lutke, has been in the business since 2004 and has a proven track record of success. He is joined by a strong leadership team who have worked together to create a platform that meets the needs of merchants, consumers, and investors.

In summary, He reckons regardless of the last earnings call it is an excellent investment for anyone looking to capitalize on the growth of e-commerce. The company has a solid financial foundation, a diversified business model, and a strong ecosystem that is likely to drive continued growth in the coming years.

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Comments

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CrazyPickler t1_j90jv0f wrote

Wife's boyfriend always give solid advice. He doesn't want to work.

Go all in, as he goes balls deep

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RubberHoss t1_j8xr0q8 wrote

I got Shopify stock after realising how good they are able to enable absolutely technically uneducated people to build a shop with it. Most CRM and Shop systems are a mess when it comes to documentation or ease of setup cause they are focused around selling expensive consulting services with it. Shopify doesn't have this so any small business wanting to sell cross platform is gonna be able to use them effectively. Like your local Ma & Pa Pizza place not wanting to pay horrendous fees to Lieferando or some other exploiter. And that's a sector that's gonna need to digitise a lot but can't afford pricy consultants or such to do it. So when i saw this i immediately bought their stock because I haven't come across a similarly well made product before. Cause the way i see it everyone with a little determination and will to educate themselves a little is going to be able to use it. And in my opinion that's what makes a product successful: ease of use and a steep learning curve so you don't get demotivated.

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skimble-skamble t1_j8xqsg3 wrote

Also intrigued to see them getting into warehousing and logistics. Basically you've go a situation where if you're buying something from a small business on instagram you're purchasing it off a shopify-built website, paid and processed through shopify, and then the item itself is picked from a shopify warehouse by shopify robots. Offering 3PL services to small businesses keeps those businesses competitive with Amazon in terms of speedy delivery, while letting them stay basically "self-owned" in terms of customer experience vs. Amazon Marketplace.

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BojjiMerc t1_j8yijvl wrote

Took some 2/24 SHOP $46C.. Hope your predictions comes through sooner than later :)

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Frapdizzle t1_j8yj6yx wrote

My 3/3 $55 calls hope you’re right.

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cl0wn_w0rld t1_j8zte9u wrote

I heard Amazon is in the process of getting ready to crush them with some new with prime service or something?

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VisualMod t1_j8xn60l wrote

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>TL;DR: Shopify is a great investment for anyone looking to capitalize on the growth of e-commerce. The company has strong financials, a diversified business model, and a strong ecosystem that is likely to drive continued growth in the coming years.
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datcommentator t1_j8yctoz wrote

I want to see more progress toward profitability, but I agree the company has a lot going for it.

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looster2018 t1_j8zsfc7 wrote

Do you want to buy a stock that goes up ? I presume your " gamble" is a short term proposition.

All of your points are great, but they are irrelevant to the price action of the stock. The big fund buyers, asset managers, etc are the ones who make the stock go up ( for the most part )

If they are out of the market, your short term gamble will turn into a long-term tiresome waiting game- with no gaurantees.

A great company, yes. Does it " have to go back up ! " No ! It may or may not, but it does not have to.

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micgab123 t1_j903nzt wrote

Your analysis is superficial

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pretepovalec t1_j92ghsf wrote

It would seem as if your wife’s boyfriend’s name were Chad GPT.. i’d buy calls on that

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VisualMod t1_j8xn6o9 wrote

>I agree that Shopify is a great investment for anyone looking to capitalize on the growth of e-commerce. The company has strong financials, diversification, and a loyal customer base that should continue to use the platform for many years to come.

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ORS823 t1_j8xq6ij wrote

There's too many platforms like Shopify. Too much competition.

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JohnnyFnCliche t1_j8xqvuh wrote

Can you name more of them? Shopify has increased brand awareness quite a bit over the years, and business owners that I know have been adding them to their businesses more and more this year...

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Specialist-Spite-608 t1_j909sby wrote

Squarespace, square online, wix, webflow

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Rice-Paddy-Daddy t1_j90myso wrote

None of these companies are anywhere near Shopify when it comes to online e-commerce platform

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JohnnyFnCliche t1_j917cgc wrote

Square would be closest, as far as normie people being aware of what the company does...

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Substantial_Fix6883 t1_j8yh8a5 wrote

But like every small business and their mother is switching to Shopify. You can see who has it by putting /login at the end of their domain or inspect element in the browser.

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Substantial_Fix6883 t1_j8yhdx0 wrote

They also got Shopify capital where they give out loans to small business at a high af payback rate. But people do it cause it doesn't go on their credit report sometimes lol

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