The Shopify Stock Bubble Can Only Keep Getting Bigger for so Long
Dana Blankenhorn, 14 March 2019
I’ve been pretty hard on web store provider Shopify (NASDAQ:SHOP), but investors, and the Shopify stock price, have ignored me. Since tech bottomed at Christmas, Shopify shares have risen from less than $130 to their March 13 opening bid of $202. That gives the company a market cap of $22.4 billion, on 2018 revenue of $1.07 billion.
As far back as 2017 I predicted this would all end in tears, citing a report from short-sellers Citron Research that called Shopify a scam at $60 per share. More recently I noted its lack of operating cash flow and use in drop-ship scams. All this is still true. But it doesn’t disturb the bulls. One recent story calls Shopify a “virtual go-to destination for aspiring entrepreneurs and small businesses.”
