Bearish or bullish on Shopify? Here's what analysts say - BNN Bloomberg

In a television interview with BNN Bloomberg Thursday, Josh Beck, a managing director Keybanc Capital Markets, outlined the bullish case for the company, while New Constructs Chief Executive Officer David Trainer believes the stock is overpriced.Following Thursday’s announcement, Shopify shares were trading nearly 25 per cent higher just below $80 per share in early-afternoon trading. Beck said the recent move by the Ottawa-based company is a positive sign for the business.

“As successful as they've [Shopify] been, the penetration is still very low. And they're making really good progress with a lot of new products,” he said.“Lots of companies are narrow. They may be selling one piece of subscription software, or one piece of fintech or one piece of ad tech, which is pretty narrow,” Beck said.

He said if you look at underlying expectations that come with a “high $50 stock price,” you “see just how ridiculous the valuation is.” According to Trainer, only a handful of companies have ever been capable of achieving a 300 per cent return on invested capital, with none being able to sustain it.

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