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Shopify: One-Stop Shop for e-Commerce
04/11/2017 2:50 am EST
Shopify (SHOP) is a technology platform company offering turn‐key end‐to-end e‐Commerce solutions. It has almost 400,000 merchants using its technology platform, explains Todd Shaver, editor of Bullmarket.com.
We see compelling value in Shopify shares. With the stock up significantly since the IPO, the obvious question is — where to from here and have we missed it? In our opinion, there’s still a lot of upside.
Shopify’s solutions are comprehensive and range from registering a domain name, to a set of templates and tools to create virtual store fronts, all the way to payment processing of credit card transactions across desktop and mobile.
With more than 1,400 applications available through Shopify’s App Store, the company is a “one-stop-shop” for anyone looking to set up an e-Commerce store.
Today, e-Commerce represents only 8% of total retail sales worldwide, implying there’s a significant runway left in this market.
Estimates say the total pie for Shopify’s industry is about $14 billion of revenue. Shopify currently has less than a 5% share of this pie.
So while Shopify may be viewed as an expensive stock on next year’s estimates, the stock is without question compelling given the big picture opportunity.
We believe Shopify is the technology platform leader in e-Commerce today. We see outsized relative growth for Shopify over the next three to five years, with Shopify growing revenue at +40% over the next four years.
We see a major bull market in e-Commerce. You have many traditional retailers under severe pressure. It’s such an obvious big picture trend.
We think Shopify is a compelling investment opportunity on the right side of the equation. In addition, Shopify is without question a high probability buyout candidate. Put this one in your shopping cart.
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