Q: Is it better to wait until the earnings report next week to buy SHOP or is this a good entry point for a long hold?
5i Research Answer:
We do not think SHOP is a stock to be bought or sold on the basis on one earnings report. We think investors should approach it with a long term view, and not buy if a timeframe is less than three years. After recent peer results we are not particularly worried about its results, BUT it is always a volatile stock. It can be sensitive to rates and the economy. We like its long term prospects, and would be fine buying. But a partial buy now with some later can also work, for those worried about short-term volatility.