Wedbush Steps To The Shopify Sidelines


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Shopify Inc (NYSE:SHOP) ha introduced multiple new initiatives to spur growth, but the stock's valuation is already full at current levels, according to Wedbush.

The Analyst

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Wedbush's Ygal Arounian downgraded Shopify from Outperform to Neutral with a 12-month price target lifted from $270 to $305.

The Thesis

Shopify unveiled during its Unite presentation a new suite of services likely to improve and differentiate its platform against rivals, Arounian wrote in the note. Most notably, Shopify detailed "big steps forward" to become a full retail operating system backed by a fulfillment network. Shopify will be able to offer merchants on its platform a more level playing field against industry titan Amazon.com, Inc. (NASDAQ:AMZN)

Arounian said Shopify's multiple investments in its business should help it capture a 6% market share of global e-commerce by 2028, or 21% excluding China. This would represent an uptick from 2% and 4%, respectively, in 2019.

Despite a clear path of growth ahead, the stock's 125% gain since the start of 2019 "appropriately reflect the opportunity ahead," according to the analyst.

Price Action

Shares of Shopify traded lower by 6% at $292.81 at time of publication Tuesday. On Monday, the stock was downgraded by Roth Capital from Buy to Neutral.

Related Links:

Shopify Analysts: New Fulfillment Network Meets Demand For Two-Day Shipping

DA Davidson: Shopify Could Sustain Solid Sales Growth For Years To Come


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorDowngradesPrice TargetAnalyst RatingsecommerceFulfillment CenterShopify UniteWedbushYgal Arounian