Shopify - SHOP - Share Chat

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Shopify was the subject of this weekā€™s Weekend Read, which you can read below.

If you havenā€™t signed up for the Weekend Read (youā€™re missing out!) then you can do that here.

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Is this the reason Shopify is down ~5% today? The power of Freetradeā€™s blog :muscle:

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Could be this article from Stratechery.

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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 Shopifyā€™s income comes from a % of sales made by its customers. It wonā€™t get this cut from Facebook sales, it will just provide itā€™s customers with easy access to the Facebook shop window. So itā€™s an additional service that Shopify can offer, but not a revenue stream for them.

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I see itā€™s free at Facebookā€™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! Iā€™m rather late to the game on this stock and Iā€™m trying to understand their business better.

Could be the case that theyā€™ll do well. Point I made at the end of that piece was that a huge chunk of their businesses fail. Something Iā€™d be interested in knowing is what % of their revenue comes from people that buy into some ā€˜drop 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 thatā€™s obviously not a good thing.

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I think (I donā€™t use Shopify, havenā€™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.

Iā€™m curious as to what everyoneā€™s strategy is for SHOP now given the huge rise itā€™s had in the last few months. Are you holding or are you looking to take profits?

Iā€™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.

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I agree I think online gaming/gambling will be huge this decade. Any companies in particular youā€™re looking at?

Interesting you should say that - Iā€™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. :chart_with_upwards_trend:

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If they pull this offā€¦

Big.

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What do we think now of this one? Future good prospects?

Iā€™m bullish on Shopify, itā€™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 arenā€™t cheap but thereā€™s much more to come from this company I think.

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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