Reported 5 months ago
Cathie Wood, known for her digital trend foresight, is increasing Ark Invest's stake in Shopify after its stock price fell by 26% following its first-quarter earnings release. Although Shopify still shows reliable sales growth and improving profitability, its high valuation and lack of profitability on a GAAP basis have led investors to become more cautious. Wood remains optimistic due to Shopify's growth potential, particularly in physical and business-to-business commerce, but warns that even after the drop, the stock remains expensive compared to other e-commerce giants like Amazon and Wayfair. While there are promising aspects to Shopify, it may not be a wise investment at the current price level.
Source: YAHOO