Is Shopify Inc. a Buy?

Shopify Inc. (NYSE: SHOP) has been one of the most exciting stocks on the market since its debut in 2015. Shares of the e-commerce management specialist have jumped 286% since its IPO, powered by revenue that has grown by 72% or more in each quarter. With results like that, it's easy to see why it's one of the most talked-about stocks today. Not only is the company putting up extraordinary growth and delivering huge returns, but its leadership in its e-commerce niche positions it for long-term dominance as online retail, which still only makes up 9% of U.S. retail sales, gradually replaces more of the brick-and-mortar variety. Many investors compare Shopify to Amazon.com, the e-commerce giant that just put up 34% sales growth on $43.7 billion in revenue.  

Of course, like most companies that engender such enthusiasm, Shopify trades at a premium valuation. The company is still not profitable, but its shares fetch a whopping 17.6 price/sales ratio, a level usually reserved for unproven biotechs and start-up tech companies. 

The debate over Shopify got more interesting recently when Citron Research's Andrew Left said he was shorting it, likening it to a pyramid scheme, and accusing it of inflating the number of customers it had through aggressive marketing tactics. Shopify shares fell 20% in the following days. 

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Source: Fool.com