Bert Hochfeld just put out a very detailed article on SHOP’s Q3 earnings and the market’s reaction to it:
-Shopify announced the results of its Q3 earlier this week.
-The results were a beat and raise quarter - the shares fell by more than 10%.
-Guidance, as has been the case indefinitely, appears to be conservative and designed to be beater.
-Almost all of the key operating metrics that are tracked by investors/analysts were positive and the company actually reported non-GAAP profits sooner than had been anticipated.
-Company executives vigorously and credibly rebutted the ill-intentioned and ill-informed “research” from Citron that has plagued the shares - although not the company since it appeared.
Conclusion: I presently do not own the shares - I sold them at prices less than here. But to be fair that was a few months ago. I’m searching for the right entry point, which is usually more visible in arrears that prospect. I sometimes miss names by limiting my portfolio to 11 names. That shouldn’t matter much to readers.
Putting that aside, I think the shares can be attractive because there really is nothing quite like SHOP available to investors. There may be a speed bump when the company discusses guidance during its February call and probably winds up guiding Q1 to a set of conservative expectations based on retail sales seasonality. But for investors with a long-term horizon, wanting to own shares in what is clearly the best in class company in this space, SHOP is as good as it gets.