Shopify was the subject of this weekās Weekend Read, which you can read below.
If you havenāt signed up for the Weekend Read (youāre missing out!) then you can do that here.
Is this the reason Shopify is down ~5% today? The power of Freetradeās blog
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 Shopifyās income comes from a % of sales made by its customers. It wonāt get this cut from Facebook sales, it will just provide itās customers with easy access to the Facebook shop window. So itās an additional service that Shopify can offer, but not a revenue stream for them.
I see itās free at Facebookās end, but would a business not still need to have a Shopify account and pay for that? Sorry if this is a silly question! Iām rather late to the game on this stock and Iām trying to understand their business better.
Could be the case that theyāll do well. Point I made at the end of that piece was that a huge chunk of their businesses fail. Something Iād be interested in knowing is what % of their revenue comes from people that buy into some ādrop shippingā scam and think they can become a millionaire from doing it. If they have a lot of churn nā burn from that segment then thatās obviously not a good thing.
I think (I donāt use Shopify, havenāt 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.
Iām curious as to what everyoneās strategy is for SHOP now given the huge rise itās had in the last few months. Are you holding or are you looking to take profits?
Iām 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 youāre looking at?
Interesting you should say that - Iāve 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 offā¦
Big.
What do we think now of this one? Future good prospects?
Iām bullish on Shopify, itās 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 arenāt cheap but thereās 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