Topic: How To Invest

Power Growth Investor Hotline – Friday, April 14, 2023

Article Excerpt

SHOPIFY INC., $61.99, remains a buy. The company (symbol SHOP on Toronto) offers merchants of all sizes Internet-based software to design, set up and manage e-commerce stores across multiple sales channels. It also handles digital payments and shipping. The stock moved up this week after major U.S. investment bank JMP Securities upgraded its recommendation on the stock to “market outperform” from “market perform.” In its report, JMP mentioned a few of the factors that we continue to point out: JMP says Shopify is the leader in commerce support and continues to take market share from its competitors—even after raising its prices by 33%. Competitors include Wix and Squarespace. JMP also added that “there is room for greater” cost cutting. JMP also noted that while Shopify is still in an investment cycle with its fulfillment network, SFN (Shopify Fulfillment Network), the size of the investment is less than expected and there’s upside for Shopify’s merchandise volumes as it gains traction with larger enterprise businesses. Despite its…