Q: Now that the dust settled after Q results and SHOP drifted a bit lower would you view it as a good entry point? Would you expect it to grow faster then the Amazon stock?
There was very positive Barron’s article on Nov 12th.
There was very positive Barron’s article on Nov 12th.
5i Research Answer:
Given the size difference, we could see SHOP grow faster relative to AMZN, and historically this has been the case, although it is also much more volatile. SHOP is not cheap, but recent earnings have been improving and analyst estimates are trending higher. We think it will be volatile, but overall its fundamentals continue to improve and we think it is a long term keeper. We would be comfortable slowly averaging in here, while being mindful of its volatility risks.