Shopify is updated and rated Speculative Sell at U.S $1323 or Canadian $1705. I hesitated to rate this a Sell given the extremely high quality of the company and its growth and the fact that buying it at what appeared to be elevated valuations in the past has generally worked out well or even fantastically well depending on when it was bought.
But my analysis has always had a heavy focus on valuation. Quality and growth is also extremely important. But looking at valuation in a somewhat conservative fashion it would be inconsistent for me to ignore the fact that the stock is trading at 40 times revenue adn call it a Buy.
But Shopify is indeed “the real deal”. It’s a fantastic Canadian success story. It is providing huge value to its customers.
Despite the high valuation some investors may certainly want to dabble in it. Just be aware of the high valuation and expect some volatility.
I would also acknowledge that the current Omicron situation could lead to another surge in online Shopping which will benefit Shopify.