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Shopify Stock: Bargain Buy or a Value Trap?

TheMotleyFool

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Shopify Stock: Bargain Buy or a Value Trap?: https://g.foolcdn.com/editorial/images/692596/person-thinking-about-a-problem-at-a-desk.jpg

This year has not been great for Shopify (NYSE: SHOP). The company has taken it on the chin, falling over 74% year to date, mainly because of recession fears and the worry that the e-commerce industry would revert to the growth rates it had in 2019.

Shopify's results seem to support the latter theory, with revenue and gross merchandise volume (GMV) expansion slowing in the company's second quarter -- which it reported on July 27, 2022. With the stock now trading at the same price it was during the market crash of March 2020, is Shopify a bargain or a value trap that investors should stay away from?

Image source: Getty Images.

Source Fool.com

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