How Much Should I Pay For Shopify Stock? | Summary and Q&A

TL;DR

Shopify's stock has been volatile, with investor sentiment influencing its price. The company's financials have both positive and negative aspects, including high valuation, low return on invested capital, and increasing shares. However, Shopify has shown impressive revenue growth over the past decade.

Key Insights

• 🤨 Kathy Wood's actions regarding Shopify's stock raise questions about her investment process.
• ❓ Shopify's stock has experienced significant volatility, influenced by investor sentiment.
• 😘 The company's financials show high valuation, low return on invested capital, and increasing shares.
• 🍝 Despite these concerns, Shopify has achieved remarkable revenue growth over the past decade.
• 🧑‍🏭 Investors should consider multiple factors before deciding to invest in Shopify's stock.
• 😥 The stock's current price may not offer a good entry point for potential investors.
• 😘 Using the stock analyzer tool, the fair value for Shopify is significantly lower than its current price.

Transcript

check please hey welcome back to everything money today we're talking about shopify both the company and the stock we'll show you the financials i like this paul likes this company i'm sure mo does too we use this in our businesses we'll show you the financials under the hood see what they're doing why their price is all over the place and what you... Read More

Questions & Answers

Q: Why has Shopify's stock been volatile?

Investor sentiment and excitement often drive the stock's price, leading to large fluctuations.

Q: What are the key financial metrics for evaluating Shopify?

Important factors to consider include the price-to-earnings ratio, return on invested capital, revenue growth, net income growth, and share dilution.

Q: Why did Kathy Wood sell Shopify stock but then buy it again?

Kathy Wood's actions may indicate a lack of a clear investment process. Selling against disruption contradicts her previous statements.

Q: Is Shopify a good investment opportunity?

While Shopify has impressive revenue growth, there are concerns about its valuation, profitability, and increasing shares. Investors should carefully evaluate these factors.

Summary & Key Takeaways

• Shopify is an 85 billion dollar company with a volatile stock price.

• The company's financials show a high price-to-earnings ratio, low return on invested capital, and increasing shares.

• Despite these negatives, Shopify has experienced remarkable revenue growth over the past ten years.