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?
Wendyfbe OP This is the play : Yes, the fundamentals are still good.
Wendyfbe OP bananarama : There should be a suitable buy almost in the short term
Wendyfbe OP 108108108 :
Wendyfbe OP 劫财死远点劫色就来吧 : In addition to the war factor, there are other business factors.