Topic: How To Invest

Q: Hello, TSI. Thank you for your thoughtful advice during this interesting time. What is your opinion of Shopify? Is now a good time to buy? Thank you.

Article Excerpt

A: Shopify, $885.83, symbol SHOP on Toronto (Shares outstanding: 111.5 million; Market cap: $98.8 billion; www.shopify.ca), offers merchants of all sizes Internet-based software to design, set up and manage stores across multiple sales channels. Most of the company’s revenue comes from subscription services, with smaller clients paying month to month and larger clientele paying annually, through their Shopify Plus subscriptions. Meanwhile, with people confined to their homes because of COVID-19, many merchants that use Shopify’s services will likely see an uptick in their revenue rather than a decline. And for firms already online, they’re in a position to take business from bricks-and-mortar retailers. The stock recently fell again after recovering a lot of the value it lost during March’s market downturn. That more-recent decline came after Shopify told investors it would miss its original target of $2 billion in revenue by 2020 because of the COVID-19 economic crisis. However, it looks like investors have regained their confidence in the company’s ability to achieve…

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