SHOP

Shopify Inc

TMT, Consumer


Presented:05/17/2018
Price:$146.10
Cap:$14.94B
Current Price:$81.93
Cap:$105.72B

Presented

Date05/17/2018
Price$146.10
Market Cap$14.94B
Ent Value$11.16B
P/E RatioN/A
Book Value$15.62
Div Yield0%
Shares O/S102.26M
Ave Daily Vol1,987,782
Short Int1.21%

Current

Price$81.93
Market Cap$105.72B
Shopify, Inc. operates a cloud-based commerce platform designed for small and medium-sized businesses. Its software is used by merchants to run business across all sales channels, including web, tablet and mobile storefronts, social media storefronts, and brick-and-mortar and pop-up shops. The company's platform provides merchants with a single view of business and customers and enables them to manage products and inventory, process orders and payments, build customer relationships and leverage analytics and reporting. It focuses on merchant and subscription solutions. Shopify was founded by Tobias Albin Lütke, Daniel Weinand and Scott Lake on September 28, 2004 and is headquartered in Ontario, Canada.

Publicly traded companies mentioned herein: Deutsche Post AG (DPW GR), GoDaddy Inc (GDDY), salesforce.com Inc (CRM), Shopify Inc (SHOP)

Highlights

The presenter is long shares of Shopify (SHOP) due to its strong and growing cohort of Shopify Plus customers, promising growth in other revenue generation segments (e.g. payment processing, capital finance, deliveries, etc.), and feels churn dynamics are misunderstood. Despite SHOP’s recent strong performance and appearing extremely expensive at 12x $1.1B of 2018 revenue, it is adding merchants at a “ridiculously fast” rate, including deceptive growth among its Shopify Plus customers. The presenter is forecasting $2.4B of revenue in 2020, ahead of the Street’s $1.9B, and puts a 9x sales multiple (30x its 30% FCF margin) on the company for a price target of $200 by the end of the year, or 40% upside from current levels.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.