I think the selloff in SHOP has to do more with a 5B shelf offering filed by SHOP than any of the metrics it reported for earnings. If this plays out as I expect, the stock will be weak until the stock is priced and offered to the public. When the secondary is finally offered, the stock should rebound.
This is still one of the fastest growth companies that I have seen.
Rob
Their investments pushed operating expenses up 63.2 percent to $167.7 million.
Total revenue rose 61.5 percent to $245.0 million.
The company’s net loss widened to $24 million, or 23 cents per share, in the second quarter ended June 30, from $14 million, or 15 cents per share, a year earlier.
This is a tremendous opportunity to add more or get in if you already haven’t done so. However with Apple earnings this afternoon, this could be seen as a good entry price or far from it and that applies to most of our stocks. I added 2% more just now to Shop and feel pleased to do so and at $125.00 per share if we get there, will add some more.
I think the selloff in SHOP has to do more with a 5B shelf offering filed by SHOP than any of the metrics it reported for earnings. If this plays out as I expect, the stock will be weak until the stock is priced and offered to the public. When the secondary is finally offered, the stock should rebound.
This is still one of the fastest growth companies that I have seen.
Rob
The cost of revenue also grew faster than revenue and the operating loss increased substantially.
I did add at about $137 but I’m curious what others here, including Saul, think.
I’m inclined to give SHOP the benefit of the doubt given its growth rate and longer term potential. Then again, I am more of a longer term investor than a trader. I hate paying capital gains taxes.
dave
I think the selloff in SHOP has to do more with a 5B shelf offering filed by SHOP than any of the metrics it reported for earnings.
Great catch, and probably overblown. From the call:
Our original shelf expires this quarter. By filing this shelf, we’ll retain financial flexibility over the next two years. Optionality is core to strategic success, and by keeping it sufficiently available we mitigate the risk of losing out on important opportunities. We’ve already put capital to work effectively in our opportunity-rich space over the past several years, and fully intend to continue our favorable track record. To be clear, we consider this to be ordinary course of business, given the pending expiry of our current shelf, and we have no current intentions to undertake an offering.
Bear
I think the selloff in SHOP has to do more with a 5B shelf offering filed by SHOP
Disagree, as they already said there were no offerings upcoming, this was just needed bureaucratic plumbing for the future.
Losses rose, stock sold off. Not a surprise, really.
Would really be interested to hear Sauls take on Shops quarter.Has been my largest holding for several years.Motley Fool hasn’t commented on yet.Thanks
Would really be interested to hear Sauls take on Shops quarter.
I was disappointed. With a huge first quarter for the economy and the GNP, I expected a very strong quarter by Shopify and I was surprised that the rate of growth decelerated as much as it it. Granted, I’m talking about a rate of growth of 60%, which most companies would kill for, but this was Shopify after all.
Saul
Hey there !
A couple of words of advice that I use 99and44/100ths percent of the time – DON’T PANIC –
Let the dust settle and have a relook.
Rich (haywool) long SHOP (a lot)