RE:RE:Off Topic - Shopify100% agree, which is why a bet on SHOP has to be just with fun money.. kinda like bitcoin, hoping the momentum goes the way crypto and TSLA flew. But certainly if the market takes a giant pooper, you can say goodbye to that investment hahah... which is why div paying stocks are so important! SU and ENB as was discussed earlier; you cannot go wrong with either
Experienced wrote: Obscure1 wrote: I appreciate it when people here share what they are buying/holding and WHY they have taken those positions.
I bought some SHOP today. with my play money (the small percentage of my portfolio not in dividend paying growth stox).
The high P/E tech stox have gotten hammered recently and are down hard now for the 6th day in a row. I was going to sell WMT to buy more AMZN as AMZN is at the bottom of its range, but SHOP is down 35% since November. Their holiday sales were strong again (up 23% YoY) which haven't been reported yet in their quarterlies and the market has ignored the info.
I'm not a tech guy at all, but I think SHOP is here to stay and the smackdown of the share price just seems more emotional than fundamental.
Wish you all the best on that one!!
At this point in my life, all of my investments are in value stocks as opposed to agressive momentum stocks. Not to say that there is anything wrong with seeing if you can pick up a win on a quick turnaround in the SP for SHOP.
To put SHOP into perspective compared to SU.
In 3Q both companies had about the cashflow from operating activities per share but the SP for SHOP is about 40-50X that of SU. The big difference in the valuation premium is that the market doesn't expect SU to grow much except for possibly increases in the oil price. Conversely, SHOP is growing at about 33% per year and so if it continues to do that the PV of its future earnings justifies its current price.
I saw a lot of this type of argument during the tech boom at the turn of the century and it generally lead to disappointment and huge portfolio losses for most investors. Will that happen for SHOP? Who knows but IMHO SHOP is priced for perfection and assumption of outsized growth for many years to come. For me I'd rather look for stray cats that are as good a pet as purebreds. BUT - each to their own.