Has there been any news or updates to justify the recent positive price movement on shopify?
Would you be comfortable to average down at current price or is it more likely to give up recent gains? Do you think it is a big fund accumulating or just normal market activity.
Im hesitating because recent talking heads opinion seem to indicate whole market is primed for correction...Opinion on this?
thx
There are always 'experts' talking about a market correction. In 40 years we have never seen a time when everyone is bullish (that would be the time to get out!). The experts don't know. A correction would not surprise us, but we would say that any day of the year. Earnings are good and interest rates are likely headed lower. Those are the important points. JP Morgan initiated coverage of SHOP last night. The company had its annual meeting recently. The stock was getting cheap vs some historical metrics. It is now on an 12-day winning streak, its longest since 2015, so a day or two checking back would not surprise us at all, but we still like the company a lot. We would consider it normal trading. If adding, we think one might be able to wait a couple of days. Nothing goes straight up.