SHOP is now trading 10% below it's pre-pandemic valuation
$Shopify(SHOP.US$ $Amazon(AMZN.US$ $Alibaba(BABA.US$ $JD.com(JD.US$
I guess I just find this hard to believe. We all understand that rates put pressure on long-duration assets, but SHOP's revenues have tripled since COVID and is still projecting strong double digit growth going forward. This is a huge amount of repricing when you consider a lot of blue chip stocks trading at 20-30 PEs are barely off their highs.
There seems to be a lot of panic out there at the moment. Given their margins, SHOP trading at 11 EV/sales doesn't seem badly valued at all. In fact, it actually seems cheap relative to the rest of the market at this point. They have a ton of cash too. It's not like this a company that's not going to survive an economic downturn.
I've been slowly buying over the last couple of days because I think it's a good long-term hold at these prices, but I suspect it will still go quite a bit lower.
Anyone else buying?
I guess I just find this hard to believe. We all understand that rates put pressure on long-duration assets, but SHOP's revenues have tripled since COVID and is still projecting strong double digit growth going forward. This is a huge amount of repricing when you consider a lot of blue chip stocks trading at 20-30 PEs are barely off their highs.
There seems to be a lot of panic out there at the moment. Given their margins, SHOP trading at 11 EV/sales doesn't seem badly valued at all. In fact, it actually seems cheap relative to the rest of the market at this point. They have a ton of cash too. It's not like this a company that's not going to survive an economic downturn.
I've been slowly buying over the last couple of days because I think it's a good long-term hold at these prices, but I suspect it will still go quite a bit lower.
Anyone else buying?
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This is the play : I’ve been buying the dip as well… Good fundamentals, sounds like a logical buy.
bananarama : 4 tranches since $800. I invest long term so I have no problem if it goes down further in the short term = buy more.
108108108 : Me. Me. Believe in shop. Buy the dip. Just more later.
劫财死远点劫色就来吧 : double digit growth?
No one knows when the war going to end and global economy is definitely going down.
where's that double digit came from?
WendyfbeOP This is the play: Yes, the fundamentals are still good.
WendyfbeOP bananarama: There should be a suitable buy almost in the short term
WendyfbeOP 108108108:
WendyfbeOP 劫财死远点劫色就来吧: In addition to the war factor, there are other business factors.