SHOP and AMZN

$Shopify(SHOP.US)$ The e-commerce software provider may seem like a bargain worth buying after tech’s extended selloff, sparked ahead of the Federal Reserve’s rate increases. With the market reacting positively to the initial rate hike, it may seem like the worst is over. However, there’s no guarantee that’ll be the case.
That’s what happened with $Amazon(AMZN.US)$ twenty years back following the dotcom bubble. Between 1999 and 2001, AMZN stock fell more than 90% before starting to make a recovery.
Admittedly, Shopify is a lot more established than Amazon was in 2001. A 90% drop from its high water mark would really be overdoing it.
The company is expected to report earnings around $5.03 per share next year. Moving 90% below its all-time high would send it to about $176.29 per share, or around 35x this estimate.
Even so, a move to, say, $300 per share does appear possible. If that were to happen, SHOP would trade for nearly 60 times next year’s earnings. One could argue this is a fair value for a business that’s seeing its annual rate of growth decelerate to around 30%.