Shopify adds merchants

Article Excerpt

SHOPIFY $213.33 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (613-241-2828; www.shopify.ca; Shares o/s: 106.4 million; Market cap: $22.7 billion; No divd.) offers merchants of all sizes Internet-based software to design, set up and manage stores across multiple sales channels. They include both permanent and temporary retail stores, but also web, mobile and social-media platforms. In the three months ended June 30, 2018, the company made $2.5 million, or $0.02 a share. (All figures except share price and market cap in U.S. dollars.) That’s compared to a loss of $1.1 million, or $0.01 a share, a year earlier. Shopify continues to attract more merchants. As a result, its revenue jumped 70.9%, to $222.8 million from $130.4 million. The company holds cash of $1.6 billion, with no debt. We think Shopify shares have room to rise. Meanwhile, though, the stock trades at a very high 547 times the forecast 2018 earnings of $0.30 U.S. a share. Shopify is a hold. hold…