An e-commerce site builder could rise.
This e-commerce site builder could rise from here. Which stock company am I talking about? Shopify.
The Canadian e-commerce website builder was flying high until its peak of $129.07 on January 29th, 2018. While the stock market was spooked, some investors were quietly gobbling shares. They understood that, while the stock market was overheated, people will continue to shop online.
For the most part, Shopify has been on a roll, growing their sales about 15% per year. They have a smart business model: some of the revenue comes from subscription fees and the e-commerce site builder collects a fee for every sale. Making their website sleek and easy to operate is a smart gateway towards success. Shopify Plus is also an interesting concept. This is a higher tier for large companies. The cost of business can be as high as $40,000 per month.
Most businesses are gearing towards an e-commerce website builder format. Retail shops are on the decline. Paying for website space is much more affordable than a store. While holiday sales from retailers were good this past year, online retail took over with Amazon leading the charge. Shopify will release their fourth quarter earnings on February 15th. We will get to see how well this e-commerce website builder did.
The online store builder will definitely show a spike during the holiday season. Analysts are expecting a revenue of about $209 million. In my article, Shopify Earnings Report, I suggested investors to buy on the fact that Black Friday was going to be huge for them. It turned out to be true.
We will see the numbers soon. The way to play this, if you want to invest in this company, would be to buy half your position before the earnings. If the stock will go down with unexpected news, you can buy the other half a bit later. If the numbers are good, then you will have a potential profit. Either way, online store builder companies are on the rise.