$SHOP and Deliverr
Skeptical, but would love to see some FCF play out. Hopefully they don’t pull a $TDOC and only add goodwill to the balance sheet to grow…
I think Teledoc isn't a great comparison. This deal is 80% cash and Shopify is already FCF positive. as a SHOP shareholder, I like this deal. I think it's money well spent. Plus, Teledoc grows via acquisition. This is Shopify adding a new tool for existing merchants and a selling point to bring on new merchants. They're buying Deliverr for the fulfillment network, not the customer base.
@interrobangbros agreed on all your points. I’m long too(in my top 5 largest positions)…my point is I hope they don’t go down a rabbit hole and try to ONLY buy their new offerings vs develop them in-house, adding “goodwill” in the process. Fulfillment is an expensive path, and becoming a competitive area. It’s also not easy to replicate in all geographies, due to scale, language and regulatory barriers, and possibly other issues. Let’s see, Tobi has always made pro-stakeholder decisions till now…hopefully he’ll continue to execute in the same manner.