Q: I believe SHOP releases first quarter results this morning. Once the call is over, can you break down the results and provide some guidance as how you feel the stock will perform near term and longer. Would the stock make your list of top 5 growth stocks to own? If not, why not?
5i Research Answer:
We have comments posted on the quarter and other comments as well. With consumers possibly struggling, and concern on capital spending by the company, we think it drops out of our top five. The stock likely flat lines for a bit until investors realize the loss was related to the logistics sale and that it still has the potential for strong growth. Longer term we would expect a decent recovery, on the assumption that interest rates do decline and we do not see a recession.