Hedge funds are diving into this e-commerce company’s shares; their interest is at an all-time high.
Shopify, Inc. (SHOP, SHOP.TO)
From The Investment Reporter
Ottawa-based Shopify is a leading global commerce company that provides trusted tools to start, grow, market, and manage a retail businesses. Many of Shopify’s 1.7 million retail businesses are small ‘mom and pop’ shops. Even so, Shopify’s platform and services also landed larger businesses such as Heinz, Allbirds, Gymshark, and Staples Canada.
One positive aspect of Shopify is that it is well-diversified. The company offers its platform and services in more than 175 countries. Shopify’s retailers sell a wide variety of products. This reduces its business risk.
Financially, Shopify’s cash and marketable securities total $6.4 billion. This greatly exceeds its lease liabilities of $155 million and senior convertible notes of $758 million.
Shopify’s high valuation kept us out of the stock until now. The stock is still costly. Then again, it’s down by more than a fifth since peaking at $1,800.58 a share. Shopify is now a buy for potential long-term gains if you can accept some share price risk and you need no dividends.
Mark Johnson, MPL Communications, Inc. Reproduced by permission of The Investment Reporter, www.adviceforinvestors.com, 800-804-8846, March 12, 2021