An update on a top-performer, Shopify
Eric Franklin
Sep 17, 2019
Today I want to talk about one of my favorite stocks, and the top performing stock in both our Long-Short and Growth strategies—Shopify ($SHOP).
When we opened our initial two trading strategies January 16th, 2019, Shopify’s adjusted closing price was $158.25.
8 months later, on September 16, 2019, it closed at $337.93, a 113% increase!
So what is Shopify? Shopify is an e-commerce platform powering businesses that want to own their brand and customer relationships, without ceding it to large full-service behemoths like Amazon. They provide tools that help retail businesses build their stores, market themselves, manage products, shipping, and acceptance of payments. They made a lot of noise in June when they announced that they’ll be plowing $1 billion dollars over the next few years to compete with Amazon’s successful “Fulfillment by Amazon” program. Ostensibly, Shopify will be building out a network of fulfillment centers for their customers to warehouse and ship products from, sending the products in boxes that reflect the individual brands, rather than Shopify.
“So this is another example of how Shopify is democratizing commerce by taking the warehouse systems, machine learning and other technologies that used to be reserved for only the largest companies in the world, and making them accessible and affordable to all merchants including those that are just starting to take off.” - Craig Miller, Shopify Chief Product Officer
With all of the negativity surrounding Amazon’s marketplace, this is an explosive opportunity in a company that could slurp away a valuable portion of Amazon’s future growth—especially in high-touch branded spaces like apparel and personal care products.
Make no mistake, getting into the shipping business directly is going to be an incredibly expensive enterprise for Shopify, and their margins are likely to take a hit; but it’s a natural extension of their platform with huge upside for their customers, leveraging economies of scale that none of the individual retail brands would have on their own. If investors believe that story, and Shopify is able to keep growing the top-line while efficiently unlocking these services, then they could keep growing. I’m excited by what we’ve seen from them to date, and anticipate holding the shares for years to come.
If you’d like to see a highly entertaining presentation on this topic, I’d recommend watching this recent video from Scott Galloway, NYU Stern School of Business professor where he lays this all out with his trademark wit and style:
“So what makes Shopify the Canadian killer whale who could challenge Amazon? It’s easy to sell product on Amazon but incredibly difficult to build a brand or sustainable business on Amazon.” - Scott Galloway
Happy investing! If you like posts like these, follow us on Twitter or sign up for our newsletter. There’s more with this came from!
Disclosure: Prospero Wealth owns shares of Shopify in our personal, as well as client portfolios. One of the co-founders of Prospero Wealth, Eric Franklin, is also an Amazon employee.
Today I want to talk about one of my favorite stocks, and the top performing stock in both our Long-Short and Growth strategies—Shopify ($SHOP).
When we opened our initial two trading strategies January 16th, 2019, Shopify’s adjusted closing price was $158.25.
8 months later, on September 16, 2019, it closed at $337.93, a 113% increase!
So what is Shopify? Shopify is an e-commerce platform powering businesses that want to own their brand and customer relationships, without ceding it to large full-service behemoths like Amazon. They provide tools that help retail businesses build their stores, market themselves, manage products, shipping, and acceptance of payments. They made a lot of noise in June when they announced that they’ll be plowing $1 billion dollars over the next few years to compete with Amazon’s successful “Fulfillment by Amazon” program. Ostensibly, Shopify will be building out a network of fulfillment centers for their customers to warehouse and ship products from, sending the products in boxes that reflect the individual brands, rather than Shopify.
“So this is another example of how Shopify is democratizing commerce by taking the warehouse systems, machine learning and other technologies that used to be reserved for only the largest companies in the world, and making them accessible and affordable to all merchants including those that are just starting to take off.” - Craig Miller, Shopify Chief Product Officer
With all of the negativity surrounding Amazon’s marketplace, this is an explosive opportunity in a company that could slurp away a valuable portion of Amazon’s future growth—especially in high-touch branded spaces like apparel and personal care products.
Make no mistake, getting into the shipping business directly is going to be an incredibly expensive enterprise for Shopify, and their margins are likely to take a hit; but it’s a natural extension of their platform with huge upside for their customers, leveraging economies of scale that none of the individual retail brands would have on their own. If investors believe that story, and Shopify is able to keep growing the top-line while efficiently unlocking these services, then they could keep growing. I’m excited by what we’ve seen from them to date, and anticipate holding the shares for years to come.
If you’d like to see a highly entertaining presentation on this topic, I’d recommend watching this recent video from Scott Galloway, NYU Stern School of Business professor where he lays this all out with his trademark wit and style:
“So what makes Shopify the Canadian killer whale who could challenge Amazon? It’s easy to sell product on Amazon but incredibly difficult to build a brand or sustainable business on Amazon.” - Scott Galloway
Happy investing! If you like posts like these, follow us on Twitter or sign up for our newsletter. There’s more with this came from!
Disclosure: Prospero Wealth owns shares of Shopify in our personal, as well as client portfolios. One of the co-founders of Prospero Wealth, Eric Franklin, is also an Amazon employee.
Today I want to talk about one of my favorite stocks, and the top performing stock in both our Long-Short and Growth strategies—Shopify ($SHOP).
When we opened our initial two trading strategies January 16th, 2019, Shopify’s adjusted closing price was $158.25.
8 months later, on September 16, 2019, it closed at $337.93, a 113% increase!
So what is Shopify? Shopify is an e-commerce platform powering businesses that want to own their brand and customer relationships, without ceding it to large full-service behemoths like Amazon. They provide tools that help retail businesses build their stores, market themselves, manage products, shipping, and acceptance of payments. They made a lot of noise in June when they announced that they’ll be plowing $1 billion dollars over the next few years to compete with Amazon’s successful “Fulfillment by Amazon” program. Ostensibly, Shopify will be building out a network of fulfillment centers for their customers to warehouse and ship products from, sending the products in boxes that reflect the individual brands, rather than Shopify.
“So this is another example of how Shopify is democratizing commerce by taking the warehouse systems, machine learning and other technologies that used to be reserved for only the largest companies in the world, and making them accessible and affordable to all merchants including those that are just starting to take off.” - Craig Miller, Shopify Chief Product Officer
With all of the negativity surrounding Amazon’s marketplace, this is an explosive opportunity in a company that could slurp away a valuable portion of Amazon’s future growth—especially in high-touch branded spaces like apparel and personal care products.
Make no mistake, getting into the shipping business directly is going to be an incredibly expensive enterprise for Shopify, and their margins are likely to take a hit; but it’s a natural extension of their platform with huge upside for their customers, leveraging economies of scale that none of the individual retail brands would have on their own. If investors believe that story, and Shopify is able to keep growing the top-line while efficiently unlocking these services, then they could keep growing. I’m excited by what we’ve seen from them to date, and anticipate holding the shares for years to come.
If you’d like to see a highly entertaining presentation on this topic, I’d recommend watching this recent video from Scott Galloway, NYU Stern School of Business professor where he lays this all out with his trademark wit and style:
“So what makes Shopify the Canadian killer whale who could challenge Amazon? It’s easy to sell product on Amazon but incredibly difficult to build a brand or sustainable business on Amazon.” - Scott Galloway
Happy investing! If you like posts like these, follow us on Twitter or sign up for our newsletter. There’s more with this came from!
Disclosure: Prospero Wealth owns shares of Shopify in our personal, as well as client portfolios. One of the co-founders of Prospero Wealth, Eric Franklin, is also an Amazon employee.
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Prospero Wealth, LLC (“PW”) is a registered investment advisor offering advisory services in the States of Washington, Oregon, and California and in other jurisdictions where exempted. We are conditionally registered in Texas.
© Prospero Wealth 2024. All rights reserved.
7724 35th Ave NE #15170
Seattle, WA 98115-9955
(971) 716-1991
hello@prosperowealth.com
Prospero Wealth, LLC (“PW”) is a registered investment advisor offering advisory services in the States of Washington, Oregon, and California and in other jurisdictions where exempted. We are conditionally registered in Texas.
© Prospero Wealth 2024. All rights reserved.
7724 35th Ave NE #15170
Seattle, WA 98115-9955
(971) 716-1991
hello@prosperowealth.com
Prospero Wealth, LLC (“PW”) is a registered investment advisor offering advisory services in the states of Washington, Oregon, California, and in other jurisdictions where exempted.
© Prospero Wealth 2024. All rights reserved.