SQ and SHOP: US retail numbers

Investment Analysis Clubs Saul’s Investing Discussions
1

Last week the retail numbers in the US came out. They were much better than expected which means that consumers are spending lots of money. This is good for SQ and SHOP as they take a cut of GVM (gross merchandise volume). This should give SQ and SHOP and extra boost in the quarter that ends in June. Also, if the US consumer keeps up this spending we could see the next few quarters get a boost to growth. This may partially explain why SQ and SHOP shares keep rising in spite of the market being down the past week or so.

https://www.bloomberg.com/news/articles/2018-05-15/u-s-april…

Chris

28 Likes
2

Well, the analysts must be thinking the same. SHOP and SQ had price target increases yesterday:

https://www.investors.com/news/technology/shopify-sauare-eco…

“Emerging brands on Shopify are getting larger, and more established brands are gravitating to Shopify to be more nimble,” KeyBanc Capital Markets analyst Brett Andress said in a report to clients Tuesday. He raised Shopify’s price target to 182 from 170.

Andress also hiked Square’s price target to 70 from 55. The KeyBanc analyst is upbeat on Square Cash.

6 Likes