Shopify funds its future

Article Excerpt

SHOPIFY INC. $209.11 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (613-241-2828; www.shopify.ca; Shares outstanding: 106.4 million; Market cap: $22.1 billion; No dividends paid) took advantage of its high stock price in December 2018 and sold 2.6 million shares to the public at $154 U.S. each ($208 Cdn.). That let it raise $400.4 million U.S. ($531.5 million Cdn.). The company plans to use the funds to expand its network and technology, increase its marketing efforts and possibly make acquisitions. All those investments are key to Shopify keeping up with rivals in its highly competitive industry. We think the stock have room to rise. Meanwhile, though, the shares trades at a very high 226 times the forecast 2019 earnings of $0.70 U.S. a share. Shopify is a hold. hold…

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