Is Shopify Stock a Buy?
It seems that even a pandemic cannot stop Shopify (NYSE: SHOP) stock for long. Not only did the company recover all of the losses from the sell-off in February and March, but by May, the stock had established a new all-time high.
Shopify benefits from a trend toward e-commerce that will only expand in the years to come. However, given its valuation, investors should avoid this stock now.
Shopify gives small businesses an easy-to-use platform. It allows them to sell online without the involvement of a bigger player like Amazon or Etsy. Admittedly, the growth Shopify is expected to experience could justify a high multiple. Analysts expect earnings growth to come in at 67% for the year. For the next five years, they forecast that those profit increases will average 75% per year. It also helps that the company turned profitable last year.
Source Fool.com
