Shopify was the subject of this week’s Weekend Read, which you can read below.
If you haven’t signed up for the Weekend Read (you’re missing out!) then you can do that here.
Is this the reason Shopify is down ~5% today? The power of Freetrade’s blog
Could be this article from Stratechery.
Interesting article. Not sure I agree with all of it. Shopify is one of the partners for Facebook Shop. Looks to be good news for Shopify, rather than bad. What am I missing?
The majority of Shopify’s income comes from a % of sales made by its customers. It won’t get this cut from Facebook sales, it will just provide it’s customers with easy access to the Facebook shop window. So it’s an additional service that Shopify can offer, but not a revenue stream for them.
I see it’s free at Facebook’s end, but would a business not still need to have a Shopify account and pay for that? Sorry if this is a silly question! I’m rather late to the game on this stock and I’m trying to understand their business better.
Could be the case that they’ll do well. Point I made at the end of that piece was that a huge chunk of their businesses fail. Something I’d be interested in knowing is what % of their revenue comes from people that buy into some ‘drop shipping’ scam and think they can become a millionaire from doing it. If they have a lot of churn n’ burn from that segment then that’s obviously not a good thing.
I think (I don’t use Shopify, haven’t done that much research) that they make a minority of income from subscriptions (Shopify account as you call it) and the vast majority as a % of sales which they will not receive from sales on Facebook.
I’m curious as to what everyone’s strategy is for SHOP now given the huge rise it’s had in the last few months. Are you holding or are you looking to take profits?
I’m now 120% up on the original investment and trying to decide what the sensible play is from here.
I sold half my position. Canada has a bad history when it comes to companies who supplant RBC at the top.
I think Shopify has a chance of making good on its promises but it is the valuation that troubles me. So I sold half having bought at $318. Essentially what is left is risk free now but I do still want a holding.
I see bubbles forming in all sorts of e-commerce stocks at the moment. I am shifting to online gaming and gambling which actually generate cash and have a chance to grow in this market.
I agree I think online gaming/gambling will be huge this decade. Any companies in particular you’re looking at?
Interesting you should say that - I’ve been looking at the gaming space too.
Gamesys and Rank are the two on Freetrade that are intriguing. Gamesys especially, although it does seem a bit expensive to my slightly noobie eyes!
Shopify by making new partnerships.
If they pull this off…
What do we think now of this one? Future good prospects?
I’m bullish on Shopify, it’s a good business and they seem to be innovating more than others in that space.
Their enterprise e-commerce offerings are good too and some big brands I work with have started using them recently.
The shares aren’t cheap but there’s much more to come from this company I think.
Shopify will enable its users to sell nfts as part of its offering.
This is big - a potentially massive crypto on-ramp and demonstrates the grasp they have for the community building, loyalty and reward mechanics that nfts can introduce