Shopify is one of the most popular ecommerce platforms on the market, and it’s no wonder why. It’s easy to use, has a wide range of features, and is highly customizable. However, some people believe that Shopify is undervalued.
Shopify’s share price has been increasing steadily over the past few years, but it has never reached the heights of other ecommerce companies such as Amazon or eBay. This could be because Shopify is a relatively young company, or because it doesn’t have the same brand recognition as its competitors.
Shopify (SHOP) is an e-commerce platform that enables businesses of all sizes to create an online store. As of June 2019, Shopify has over 820,000 merchants globally.
The company went public in May 2015 at $17 per share. Shopify stock has since more than quintupled to a recent high of $96.75.
Shopify’s impressive growth has caught the attention of investors and analysts who believe the stock may be undervalued.
Risks
Investing in Shopify involves risks. These include but are not limited to:
-Shopify is a relatively new company and has yet to prove itself over the long term. There is no guarantee that it will be successful in the future.
-The stock is heavily reliant on the success of small businesses. If there is a recession or downturn in the economy, Shopify’s business and stock price could suffer.
-Shopify competes against larger, well-established companies such as Amazon (AMZN) and eBay (EBAY). These companies have deep pockets and could undercut Shopify on price or offer more attractive terms to merchants.
However, there are several reasons why Shopify could be considered undervalued. Firstly, its revenue growth has been impressive, with sales increasing by 95% in 2017.
Secondly, it has a strong market position, with over 500,000 merchants using its platform. Finally, Shopify’s recent move into physical retail could help it to tap into a new market and boost sales.
In conclusion, while Shopify’s share price may not be as high as some of its competitors, there are several reasons why the company could be considered undervalued. Its impressive revenue growth, strong market position, and expansion into physical retail make it a company to watch in the future.
