Shopify Comment January 13, 2019

I have added Shopify to the list of stocks but only on a preliminary basis and have not yet assigned it a Buy / Sell rating other than to say that it is Speculative. Shopify appears to have a wonderful business model and a great future. But it it is not yet profitable on a GAAP basis which makes it very difficult to value. Despite not being rated, the report provides a description of Shopify and provides information and y thoughts on the company. I will likely assign a buy / sell rating in a subsequent update. A possible added value for Shopify is that it might be an attractive take over target for the likes of Amazon or IBM.

Much of Shopify’s potential future value may already be reflected in the share p[rice. Clearly the really big money has already been made by the insiders that started the company. And those that bought soon after the IPO in 2015 have also done very well. With a U.S. $16 billion market cap it could still have upside but probably not massive upside at all.

The analysis is in U.S. dollars because the company reports in U.S. dollars and gets most of its revenue from the U.S.

Scroll to Top