SHOP - Embedded Expectations Analysis - 2018 05 11
Shopify Inc. (SHOP:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 363.3x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about their bottom line and future opportunitiesSpecifically, management may be downplaying concerns about the cost of their cloud transition, and may be concerned about the potential for a continuation of operating losses seen in Q1. Also, they may be exaggerating the opportunities they see ahead of them, particularly in terms of their ability to scale the business efficiently
Shopify provides a cloud-based commerce platform designed for small and medium-sized businesses. Merchants use its software to run their business across all of their sales channels, including web, tablet and mobile storefronts, social media storefronts, and brick-and-mortar and pop-up shops. Co. provides a platform for merchants to create an omni-channel experience that helps showcase the merchant's brand and grow its business. Co.'s platform provides merchants with a single view of their business and customers across all of their sales channels and enables them to manage products and inventory, process orders and payments, build customer relationships and leverage analytics and reporting.
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