This is HUGE! $SHOP
Makes me want to start a position on $SHOP. Thoughts?
SHOP’s 6-F is good in my opinion. Merchant solutions revenue outpaced GMV, Shopify take rate hit the highest in a quarter that I can see going back 5 years. I like the acquisition to help build out their fulfillment network. Shopify Pay with another monstrous growth quarter, accounting for more than half of all payments processed on Shopify. I get why it’s getting battered and yes, it is still expensive, but it’s not dead nor dying. Their moat is increasing. Management continues to dump every dollar into the business. I own shares, added just a few weeks ago, and will probably add to it again in the near future.
@avid6ix, can you say more about what you find so encouraging about the acquisition? I'm trying to make up my mind about it. Gonna take way more than an acquisition to build out a logistics network and supposedly logistics has been a priority for Tobi for several years now and we've yet to seen much come to fruition in that regard. (Full disclosure--$SHOP is my biggest personal holding.)
@tomato You are 100% in terms of how much more work it takes to build out a true logistics network, but the reason this acquisition makes me bullish is that for the first time I actually see $SHOP as a true competitor to $AMZN (marketplace). With the rise of Amazon I saw the rise of SEO driven "brands", in other words people were building SEO shells and selling anything that made sense. $SHOP is bringing back true branding and products and this acquisition supports this.