Ian Cooper’s Stock Pick of the Week

Chart of Day: Shopify (SHOP)

Shopify (SHOP) is a global commerce company that provides essential internet infrastructure for commerce, offering trusted tools to start, scale, market, and run a retail business of any size. The company’s platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, and buy buttons.

With a market cap of $76.2 billion, it’s an ecommerce giant.

However, over the last few weeks, it’s also been a volatile ecommerce giant. All thanks to investor concerns about a slowdown in revenue growth estimates for its current quarter, and the company’s struggle to sustain GAAP net profitability.

As a result, SHOP gapped from about $7.50 to a low of about $57, creating a buy opportunity, according to Goldman Sachs. In fact, the firm just upgraded SHOP to a buy rating, noting it could rally 30% higher.  Even Cathie Wood’s Ark Invest just picked up 30,000 shares.

Plus, at current price, SHOP now trades at less than growth, with a PEG ratio of 0.83.

Ian Cooper is an experienced trader who uses a combination of technical, fundamental, and news analysis to help individual investors grow their wealth. Ian’s Premium Options Strategies

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