Shopify

One sentence overview: Shopify is a multi-channel platform that gives your clients one system for their online and in-person sales, whether they’re selling in-store, at a market, or for a pop-up shop event. 

Shopify Ticker : SHOP

5/26/2020 Stock Price: $767.89

Today’s Market Cap: $82.5B

Total Shares Outstanding Recent Quarterly Report: 117 million shares

 Shopify Investor Relations Page

https://investors.shopify.com/home/default.aspx

Shopify SEC Page

https://www.sec.gov/cgi-bin/browse-edgar?CIK=shop&Find=Search&owner=exclude&action=getcompany

Shopify Glassdoor Ratings

https://www.glassdoor.com/Reviews/Shopify-Reviews-E675933.htm

Shopify Overview

Shopify Inc. is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants.”

Mission: Making commerce better for everyone

We help people achieve independence by making it easier to start, run, and grow a business. We believe the future of commerce has more voices, not fewer, so we’re reducing the barriers to business ownership to make commerce better for everyone.

History

Shopify was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake after attempting to open Snowdevil, an online store for snowboarding equipment. Dissatisfied with the existing e-commerce products on the market, Lütke, a computer programmer by trade, instead built his own. Lütke used the open source web application framework Ruby on Rails to build Snowdevil’s online store, and launched it after two months of development. In June 2009, Shopify launched an application programming interface (API) platform and App Store. The API allows developers to create applications for Shopify online stores and then sell them on the Shopify App Store.

On April 14, 2015, Shopify filed for an initial public offering (IPO) on the New York Stock Exchange and Toronto Stock Exchange under the symbols “SHOP” and “SH” respectively. Shopify went public on May 21, 2015, and in its debut on the New York Stock Exchange, started trading at $28, more than 60% higher than its $17 offering price, with its IPO raising more than $131 million.

Products

⦁ Inventory management – Manage your entire inventory with Shopify. Track stock counts, and automatically stop selling products when inventory runs out.
⦁ Product variations – Offer different variations of your products, such as multiple sizes, colors, materials, and more. Each variation can have its own price, SKU, weight, and inventory.
⦁ Product organization – Organize products by category, type, season, sale, and more. Use smart collections to automatically sort products based on vendor, price, and inventory level.
⦁ Multiple images – Add multiple images for your products, so you can show off your product from all angles.
⦁ SEO product tags – Optimize your product pages for search engines with product specific meta tags, titles, and URL handles.
⦁ Digital products – Customers can order and download your digital products right from your online store.

⦁ Import/Export – Import or export your products using CSV files, or one of Shopify’s importer/exporter apps.
⦁ Unlimited Products – There’s no limit to the number or type of products you can sell in your online store.

Business and Financial Drivers

Competition

While Amazon is not considered a direct competitor, Amazon offers a significant platform for a business to consider. In addition there are number of Ecommerc platforms competing in Shopify’s space. They are: Bigcommerce, Volusion, Woocommerce, Wix, Magento, and Weebly. Lemonstand. 3D Cart.

Future Outlook

The 27 analysts offering 12-month price forecasts for Shopify Inc have a median target of 733.00, with a high estimate of 860.00 and a low estimate of 360.00.

Risks

Going into June, 2020 the biggest short term risk to Shopify the United States’ economy is being unable to restart quick enough to keep a significant number of Shopify small businesses from failing.

Long term Shopify needs to continue to grow at rates similar to Amazon in order to justifies its current valuation.

Disclaimer: I do not have any formal recommendation for or against this stock, so don’t buy or sell stocks based solely on what you read.

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