On a recent call, Josh Silverman discussed the uncertainty that has become the new norm. He expressed a desire for the new norm to be similar to Airbnb's success, where they made a billion in cash flow.
- Etsy had issues with a strike, but the opening hurt the company more.
- Best categories for Etsy are wedding fashion, tote bags, and passport cases.
- Etsy was hurt by the pandemic, but it will survive.
- Shopify's Q1 revenue was up 22%, but it missed analyst expectations.
- Amazon didn't perform well in the quarterly earnings report.
- Subscription solutions at Spotify had an 8% increase in revenue but missed analyst expectations.
- Wayfair had a larger loss than anticipated.
- Restoration Hardware lowered its fiscal year guidance.
- Companies are struggling because people are going out instead of staying home and making things.
Despite the challenges faced by companies like Etsy, Shopify, and Wayfair, there is hope for survival. However, the pandemic has caused a shift in consumer behavior that companies must adapt to if they want to succeed.
Jim Cramer breaks down recent earnings from Airbnb, Roblox and Shopify
The speaker discusses the difference between an epidemic and a pandemic, emphasizing the importance of vaccination to prevent the spread of disease. He shares a personal story about his wife saving someone's life who had not been vaccinated and highlights the potential for antivirals to be available soon. The conversation then shifts to the impact on retail sales and various companies, with the speaker praising Airbnb's CEO for his approach and expressing disappointment with the slowing growth of Roblox. The speaker questions the need for Roblox to be public and discusses the company's cash flow and recent downturn in bookings. He concludes by praising Toast for not banking on the pandemic and noting the crowded space of restaurant software. Overall, the speaker emphasizes the importance of being prepared for a post-pandemic world and praises companies that have adapted well to the changing landscape.
Shopify is about 10% of total U.S. e-commerce capital
Shopify GMV Up 11%: A Positive Turn for Independent Retail
Shopify, one of the dominant players in global e-commerce, has recently reported a smaller-than-expected operating loss, leading many to question if we are in the midst of a turn. In this article, we'll explore the factors that have contributed to this positive turn, including the macro tailwinds of e-commerce, Shopify's dominant position in the market, and their unique role in their merchants' businesses.
Factors Contributing to the Positive Turn:
- Macro Tailwinds of E-Commerce and Digitalization: The global e-commerce industry is set to grow from $5 trillion today to $7 trillion by 2025, with digitalization driving this growth. Shopify is well-positioned to capitalize on this trend, particularly in the independent retail space.
- Shopify's Dominant Position: Consumers' favorite brands are almost entirely on Shopify, giving them a significant edge in the market. This is evidenced by the fact that during the third quarter, more merchants than ever before used Shopify's solutions.
- Unique Role in Merchants' Businesses: Shopify's Merchant solution attached rate is 2.14, which means that more merchants are taking more of their solutions, including payments, capital, fulfillment, and more. This has led to a good quarter in terms of revenue, which was up 22% on a three-year CAGR.
- Operation Discipline: Adjusted gross profit was up nearly 11%, and on a three-year basis, adjusted gross profit CAGR was 46%. Operating expense growth is decelerating year-on-year, and Shopify has about $5 billion in cash on the balance sheet.
Expected Economic Activity Next Year:
While the economic slowdown may impact certain channels, Shopify's versatile approach to finding more customers means that their merchants' businesses are future-proofed. Consumer spending is up 8.2% YoY, and Shopify's millions of merchants are gearing up for a strong holiday season.
Shopify's positive turn is due to a combination of macro tailwinds, their dominant position in the market, and their unique role in their merchants' businesses. With operation discipline and $5 billion in cash on the balance sheet, Shopify is well-positioned to grow their business while being good stewards of capital. With millions of merchants ready to sell, it looks like a bright future for independent retail.
Cramer's lightning round: You have a chance to buy Shopify
Mad Money Lightning Round is a popular segment of the financial show, which is sponsored by TD Ameritrade. The show is hosted by Jim Kramer, who is an expert in the stock market and provides valuable insights into various stocks. In this segment, Kramer answers callers' questions about specific stocks and provides his analysis of their potential.
- Steve from New Jersey: Asked about Shopify and Kramer recommends buying the stock as it is performing exceptionally well in the e-commerce industry.
- Mark from Florida: Asks about Fisker and Lucid, and Kramer recommends buying these stocks as they are expected to benefit from government subsidies in the future.
- Jamie from Arizona: Asks about Callaway Golf, and Kramer recommends buying the stock as golf is a growing sport, and the company has been performing well.
- Doug from Ohio: Asks about Juniper Networks, and Kramer recommends buying Cisco instead as he believes it is performing better.
- Payush from Washington: Asks about Kroger, and Kramer recommends buying the stock as the company has been performing well and has a good future outlook.
- Jill from Massachusetts: Asks about Bill.com, and Kramer recommends buying the stock as it has good potential in the reopening society.
- Anne Marie from New York: Asks about Petco, and Kramer recommends avoiding the stock as it is not performing well compared to its competitors.
- Jim from Florida: Asks about Royal Dutch Shell, and Kramer recommends avoiding the stock and instead recommends Pioneer, which is doing well.
Mad Money Lightning Round is a popular segment that provides valuable insights into the stock market and specific stocks. Kramer's analysis and recommendations can help investors make informed decisions about their investments. Overall, it is important to do research and seek professional advice before investing in any stock.
Jim Cramer: How Shopify, Etsy are empowering small businesses
Small businesses are the backbone of the economy and have been instrumental in its recovery. However, they face numerous challenges when it comes to expanding their operations. In this article, we will discuss two companies that are making life easier for small businesses, Shopify and Etsy, and how they are helping entrepreneurs realize their dreams.
- Shopify helps small businesses build their economic platforms by providing them with tools to set up an online store.
- The company invests in or makes loans with small businesses that need a little capital to get started.
- Shopify has become a major platform, with 450 million people checking out on their platform in the United States alone.
- The web is a fantastic leveler, and even a tiny company can have a Fortune 500 presence online.
- Shopify won't take a cut for the first million dollars of sales of developers that make tools sold, which is a great bargain for small businesses.
- If you bought Shopify stock years ago, you're now up 475%.
- Etsy is a platform that helps entrepreneurs realize their dreams by making it possible to scale.
- The company has active users from 14.9 million sellers, many of whom aspire to have small businesses.
- Etsy gives these sellers a steady audience of people who are sick of mass-produced junk or merchandise that you can't get at the mall.
- The vast majority of sellers on Etsy are women who, because of Etsy, can sell their wares all over the world.
- Etsy helps build a real relationship between buyers and sellers, where buyers can get distinctive handmade items regularly.
Small businesses are crucial to the economy, and companies like Shopify and Etsy are making it easier for entrepreneurs to realize their dreams. Shopify provides tools to set up an online store and invests in small businesses that need capital. Meanwhile, Etsy helps entrepreneurs scale and build a steady audience of buyers who are interested in unique, handmade items. These companies are making life easier for small businesses, and they're definitely worth keeping an eye on.
Shopify CEO: Capitalizing on Cannabis | Mad Money | CNBC
Shopify: A Cloud-Based Software Company Empowering Merchants
Shopify is a cloud-based software company that provides merchants with the tools needed to succeed on the internet. Its platform can help set up an online store and handle everything from digital marketing to payments and shipping. The company got its start as a web-based snowboard store but has since expanded to become a major player in the direct-to-consumer (DTC) market.
- Shopify is a leader in the DTC market, which is a commonality among successful retailers.
- The company's stock has seen tremendous growth, from $17 in 2015 to $175 in 2019.
- Shopify's platform has helped over 820,000 merchants compete on the internet, including large brands and small businesses alike.
- Kylie Jenner, among other major influencers, has seen incredible success on Shopify.
- Shopify has democratized the business process for small businesses by providing them with services and solutions.
- Shopify offers cash advances to small businesses that need capital, making quick and effective underwriting decisions.
Shopify vs. Etsy:
- Etsy is a marketplace that rents customers to makers, while Shopify enables entrepreneurs to own their audience and profit margin.
- Shopify is a retail operating system that feeds back to one centralized back office, where merchants can run their entire business.
- Shopify plans to disrupt the $250 billion cannabis market by powering retail sales in Canada and beyond.
- Shopify aims to become the most important piece of software that merchants use on a daily basis.
Shopify has become a leader in the DTC market, helping merchants succeed on the internet with its platform. The company offers services and solutions that democratize the business process for small businesses and has disrupted the cannabis market. With plans to become the most important piece of software for merchants, Shopify's future looks bright.
Jim Cramer says these 10 tech and software stocks can make a comeback
Jim Cramer, the host of Mad Money, is on a mission to help investors make money in the stock market. He believes that there is always a bull market somewhere and he is here to help investors find it. However, he also warns that bad money starts now, as many investors have experienced losses due to the recent market downturn. In this article, we will look at Cramer's analysis of the stock market, focusing on the tech sector and the impact of the Federal Reserve's tightening policy.
- Big losses in hidden businesses:
Cramer notes that many investors have experienced losses in businesses that are hidden and sound confusing, such as enterprise technology and software companies that help other businesses do things more efficiently. These companies were hit hard by the Federal Reserve's tightening policy, which declared war on inflation.
- Tech stocks hit hard:
Even some of the most durable tech stocks, such as Amazon, have been hit hard by the market downturn. Amazon's exposure to advertising and cloud infrastructure has made it vulnerable in a market where these areas are softening and facing increased competition. Other tech stocks, such as Netflix, have also experienced significant declines.
- Winners and losers:
While some stocks have been hit hard, others have thrived during the downturn. Discount retailers such as Burlington and Dollar General have seen their stocks rise, as have food companies such as Eli Lilly and Merck.
- Surviving the business cycle:
Cramer notes that the key to surviving the business cycle is to invest in companies that are recession-proof or can pivot to profitability during a downturn. He advises investors to look for companies that can weather the storm, rather than those that are focused solely on revenue growth.
Cramer's analysis of the stock market highlights the importance of investing in companies that can survive the business cycle. While some tech stocks have been hit hard by the market downturn, others have thrived. By focusing on companies that are recession-proof or can pivot to profitability during a downturn, investors can increase their chances of success in the stock market.