Shopify Subordinate Voting Ord Shs Class A T.SHOP

P/E Ratio - 273 Today

[Bertanderson]

I've been through the 2000 tech bubble correction. During hard times, these so called growth stocks get hit the most, regardless of forward earnings or the hope for a steady economy which we are far from stating. Let's be realistic, inflation is going to take time to control and we don't know how these rate increases will play out. Therefore, it is more likely than not, that people will be jumping from the high risk stocks like Shopify. If a more realistic P/E is 27, that is a divided by 10 reduction in the current price of Shopify stock or down to $47.48. It's a very painful decline that could occur over the summer. I do believe that in the long run, this company will be solid but it could be a few painful years before we see that return to those levels.

[Experienced]

Good points Bert... Declining real incomes due to inflation is taking a bite out of retail sales - WMT and TGT are the canaries in the coal mine.  Seems to me that the market will need to recalibrate its estimates on growth and I agree with you that high P/E companies will be hit harder than average. That said, the market will get through this inflationary period and smart investors will do