SHOPIFY- land gracefully and REFUEL for more HIGH-FLYING ACT
Mis à jour
Who doesn't like the high-flying act? Sometimes, the proper rest is needed in order to soar even higher.
Shopify needs a deep pullback in order to draw in more trigger-scary investors who wait on the sideline.
Such parabolic movement is not sustainable with RSI hovers above 70 since early 2017 on the monthly timeframe.
Only one red bar in the last 14 monthly bars... It needs to cool down a bit.
For positional and long-term traders, check my pro & con list below.
Give me a like and follow me if you find my analysis useful. Much appreciated :D
Pro-
Strong CAGR
Dominate the e-commerce platform market by capturing the 31% market share
Growing gross merchandise volume- The value of all products sold by merchants on Shopify’s platform
Growing gross payment value through Shopify payment, creating an more integrated platform
Strengthened the Shopify fulfillment network with the acquisition of fulfillment automation company
Con-
Square partners up with UPS
Overvalued according to financial metrics (EV/EBITDA, P/S, P/E)
High burn rate that prioritizes growth over profitability (Weak EPS)
Negative free cash flow despite not heavily invest in R&D
Shopify needs a deep pullback in order to draw in more trigger-scary investors who wait on the sideline.
Such parabolic movement is not sustainable with RSI hovers above 70 since early 2017 on the monthly timeframe.
Only one red bar in the last 14 monthly bars... It needs to cool down a bit.
For positional and long-term traders, check my pro & con list below.
Give me a like and follow me if you find my analysis useful. Much appreciated :D
Pro-
Strong CAGR
Dominate the e-commerce platform market by capturing the 31% market share
Growing gross merchandise volume- The value of all products sold by merchants on Shopify’s platform
Growing gross payment value through Shopify payment, creating an more integrated platform
Strengthened the Shopify fulfillment network with the acquisition of fulfillment automation company
Con-
Square partners up with UPS
Overvalued according to financial metrics (EV/EBITDA, P/S, P/E)
High burn rate that prioritizes growth over profitability (Weak EPS)
Negative free cash flow despite not heavily invest in R&D
Note
Perhaps, now is the time to scale out... Earning report has never had any correlation with Shopify's share price. *Largest daily selling volume since $117
*Overheated momentum
*Shallow pullback
*Declining buying volume.
Note
Congratz to those who shorted or closed their long positions after the blow-off top around $530-$550!Trade fermée: cible de profit atteinte
Around $530-$540
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