I know SHOP is another less followed company on this board, but for those who are interested, Wayfair just had a blowout earnings release. Although they are quite different businesses, this is additional evidence that online shopping is kicking butt. We have already heard from SHOP in the last month that they are experiencing black friday like traffic on a daily basis, and SHOP reports earnings tomorrow morning.
I just looked at the Wayfair chart. It’s insane. It dropped from a high of about 160 just over a year ago, steadily drifting downward, and bottomed at 21.6 only about 7 weeks ago!! It’s now at 170. That’s about an 8 fold rise in just 7 weeks. Totally insane. It’s benefiting from the shift to ecommerce but I don’t think it looks like as clear a winner as others. It wasn’t killing it before the pandemic. This market is very overheated now. Some names seem very deserving but others look incredibly overbought, even some of the better tech names.
SHOP is likely deserving but also seems due for some time of pull back with profit taking. If the market ever takes a breather and pulls back, it’s best to have a list of names to buy. CRWD looks like it has had a great run but looking at the valuation and fundamentals compared to other growth stocks (before and after Covid), it may just be getting started - so I added when it dipped a little today while everything else was soaring.
Dave