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shopify stock split 2022

Published on: January 13 2023 by pipiads

Shopify Stock Target Price & Prediction After Stock Split | $SHOP Stock

hi, i'm paul. we're going to look at shopify. they just completed a 10 for one stok split. now, before we go further, i want you guys to know. we made two videos about shopify in the last two years. one was on december 16- 2020.. the stok, after adjusting the split, was selling about a hundred dollars. i said i couldn't even touch the stok because it had to go 20 a year for 15 years and have higher margins to even justify that price back then: 135 billion. price to sales: 54. price to earnings: 701.. do we need to go any further? p, e, p, e of 700. pe is 700.. it made 196 million dollars last in the last 12 months, guys. 196 million bucks. it's selling for 134 billion. i think you almost made 196 million dollars in the last 12 months and you're not, are you? you're not worth 135 billion. no, i'm not. guys, i don't think we need to go any further. i hate to break it to you. i mean, they got great margin. they got great margins, really awesome. but this has got to come down so much. it's ridiculous. how much revenue to grow, buy for the next 10 years to justify today's price, not 10 years from now. it's price, today's price, and that's where i have an issue with growth investing. everybody always puts more value on growth. when you break it down, the numbers, you sit there and say: is this a probable outcome? 20 per year is okay. it's a small company. it could grow 20 a year all day. i'm fine with that. then it's worth what it's worth today at a 30. and then in february of this year, the stok had fall well from that point, went from 100 to 176.. and the average person out there would say, paul, look, you were wrong. and i said no, i'm not. now, february 10th 2022, just six months ago. five months ago it was at night- it had fallen to 90 bucks. we did another now stuff. i said i, i don't see it. high of 1763 in the last year and it was recently as low as 780 and it's currently at 8.72. so again, let's go to the eight pillars. i mean almost a thousand times free cash flow last five years, 162 times the five year earnings. okay, that's pretty sick, that income growth. i mean, guys, this is a forty percent. look at this, guys. shares outstanding have increased forty percent. i'm gonna really wanna accentuate this for those of you new to the channel: shares outstanding are the silent killer of investing of companies. they're diluting you. if a company has 10 shares outstanding and you own one, you own 10 of the business, 1 out of 10.. if they issue two more shares, there are now 12 shares outstanding, but you still own one. and now you own one out of 12 shares, which is 8.33. so you went from getting 10 of the profit to getting 8.33 of the profit just by issuing shares. that's dilution in this situation. they had 10 shares and now they have 14 and you still own one- major dilution. we're on six, 10 percent, down to six and a half, seven percent. so, guys, i look at these 52 week lows. let me show you where it's at today, guys. so, if you, if you have our software, if you're a subscriber of our software, please follow along. go to the eight pillars type in shopify. guys, look at it now it's at 33 a share. it hit a low of 29 per share just recently. guys, in the long run, companies will go to what's fundamentally there. okay, their sales are up since february, december of 2020, their profits up, yet the stok is down. how much? 70 since 2020, since december 2020, and what is that? 80 since the peak of this last year back in november or december. so what does this mean, guys? i cannot stress this enough: when you're buying a stok, when you're buying a stok, you're buying a piece of a business. if you're new to this channel, you've probably heard that before from warren buffett, charlie munger, seth clarkman, every single howard marked, every single value investor of all time. if this makes sense to you, stay on with the video, subscribe to the channel. you're going to learn a lot more. it sounds repetitive, but investing is simple, but it's not easy. okay, most of the hard part is emotional. you see a stack go from 100 to 176. you see some guy in the internet in a some sort of white t-shirt saying don't buy this stok and it goes to 176. you're like this guy's an idiot. but now it's at 30 bucks and i think there's gonna be a lot more pain for companies like this. so let's go analyze the company. because the other thing i remind you: stok splits don't make this the company cheaper. it makes the nominal price of the shares lower, allowing more people to buy more shares, because everybody rather buy a thousand shares than 100 shares. everybody rather buy 100 shares than 10 shares. it's a complete manipulation. it's basically marketing. that's okay. google's doing it on july 15th, amazon did it, tesla's done it. a lot of companies do it to bring the price down for the average investor to be able to buy more shares and spur some more demand. so, guys, let's look at our eight pillar process to understand shopify. remember the fundamentals have stayed the same even after the stok split. so, pillar number one: we want the 10-year pe ratio to be under 22.5 on the main page of our software. five-year pe: 143, still expensive. pillar number two: we want the five-year return on invested capital to be greater than nine percent- one point two percent. so this basically means they're not doing a good job of getting a return on the money that's invested in the business through debt and equity. so that's a problem. pillar number three: we want to see revenue growth of the last five years. so we scroll the top, go to our income statement and, very simply, five years ago, 760 million in revenue. last year, 4.83. check mark there. now, keep in mind in the year that they were at 100, i said it was overpriced. their sales were around, call it, 2.5 billion dollars in that previous year. now they're at 4.8 and the stok has fallen. how much? 70 from that point after going up. so i'm 70 more percent. so just keep that in mind when you're looking at a stok saying, oh my god, the growth is huge. pillar number four: we want net income growth over the last five years. so we're going to stay on the income statement. scroll down. five years ago they lost 42 million. last year they made 181 million. the previous year they made 1.6 billion. there must have been something in there that was a huge, um, a huge jump, okay. pillar number five: we want shares outstanding decrease. and guys, this is a silent killer investing. when a company is increasing its shares, it is diluting you as an owner. it is now taking all the revenue and profit and giving it, splitting it up amongst more people. if a company has 10 shares outstanding and you own one, you own 10 of the business, 1 out of 10.. if they issue 2 more shares, you still own one share, but now it's split amongst 12 owners and not one owner. now you own, point three, three percent of the business versus ten percent. so you're getting diluted. so we scored the bottom of our income statement and we look at the end of year six: 902 million last year, currently 1.26 billion. so they're diluting people. pillar number six: we look at the debt, the long-term liability of the company. because debt works for companies the way it works for you personally: the more debt you have, the more likely you are to not have a good time if times get tough. so we go back to the main page and we take our five-year average free cash flow- 145 million- right here on the main page. we multiply it by five and that's roughly 40 747. call it 725 million dollars. so we want their long-term liabilities to be under 725 million. so we go to the balance sheet. we go all the way to the bottom: long-term liabilities: 1.36 billion. so that's the next. now keep in mind, guys, this is a company that's growing fast and they're reinvesting back in themselves, so their free cash flow number will be lower than most. so this one doesn't worry me as much, but it's still a concern. now pillar seven and eight have to do with free cash flow. free cash flow is the lifeblood of the business. it is calculated by taking your cash from operations and deducting your capital expenditures. you can do one of five things with free cash flow: you can buy back shares, pay d.


hey, what's going on youtube and welcome back to tik conversations. i am host guillermo. it is june 26th. hope you are having a great weekend. so far, before i get into today's video, all i ask is: do you guys hit the like button down below and subscribe? guys, it really helps with the channel, and check out the discord link to it in the description below. over 90 000 members completely free to join. you can also become a premium member on here for seven dollars a month. you'll get access to a bunch of great resources. one of them is our alerts. here's an example of an alert from last week. this was a call option on lyft. we paid 131, we sold for 205, so we made a 74 profit per contract on this alert. so check out the discord, the link to it in the description below. now in today's video, i want to tok about the shopify stok split, which is finally about to happen. so i'm going to go through everything that you need to know about this stok split. so let's just get right into this video. guys. let's head on over to shopify stok. so this is going to be tiker symbol s-h-o-p. shopify. so let's click on shopify here. and shopify is currently at 386 dollars and 50 cents a share, if we like. if we take a look in the last year, shopify has not had a very good year, right. so shopify is actually down 78 from its 52-week high of 1 762 a share and it has an average analyst price target of 510 dollars a share. so, according to the analyst, they still see 32 upside from its current level. now, shopify- for those of you that are not familiar with this company- is a leading global commerce company providing trusted tools to start, grow, market and manage a retail business of any size. so shopify powers millions of businesses in more than 175 countries. so what i'm going to do here, let's first start by taking a look at the stok split history for shopify. so remember, we can always go to stok split historycom and take a look at the stok split history for any stok. so when it comes to shopify, it has never had a stok split before. okay, so this is going to be its very first stok split guys. now just kind of one fun fact here back: if you would have purchased this on may 21st 2015, if you would have purchased, uh, let's say, ten thousand dollars today, you would have about a hundred fifty thousand dollars and at the peak you would have had almost, you know, six hundred fifty thousand dollars. so shopify has had some pretty great returns over the past couple of years. but anyways, let's take a look here at the stok split details now. so let's take a look at this artikle. so a couple of things. number one: why is shopify splitting its stoks? remember, stok splits can have some benefits for investors. the main reason companies do it is to lower the share price by making more shares available and thus making the stok more attractive and accessible to new retail investors. so what does that mean? that means that right now, if you wanted to purchase one share of shopify, you would have to pay about 386 dollars per share. if you're a smaller account, that may be a lot of money, right. that might be a huge percentage of your portfolio. well, after the stok split, each share of shopify will only be one-tenth the price. so again, it'll be more affordable to a lot more people. now it also has other benefits. for example, if you wanted to sell options on shopify, right now you would need around 38 000. after the stok split, you're only going to need around 800. so it's going to be a lot more affordable to sell options, even buying options, right. but to buy an option on shopify it's going to be a lot cheaper now. so a lot of different benefits here. that's why they have the stok splits. now let's take a look here at the stok split details. so the stok split is going to be a 10 to 1 split, and so the way you read this is: for every one share you own, you will now have 10 shares after the stok split. so if you have 10 shares right now, after the stok split, you will now have 100 shares- enough to start selling covered calls. now that also means that the share price is going to drop by one tenth, right. so that means again that if shopify is around this price, right, uh, 386 dollars- after it's split- after it splits, each share will be cents a 38.65. so again, a lot more affordable to more investors. now you only need 38 dollars to be able to purchase one share rather than 386 dollars, okay, so let's take a look here at a couple of other things. so the other thing to mention here is that they also boosted the ceo's voting stake to 40 percent, uh, by issuing new, uh, a new class of shares. right, and they actually tok about that here they call it the founder share. but, more importantly, the, uh, the dates, the important dates here. okay, and i want to tok about this. so shopify says shareholders of record, as of june 22, will receive 9 additional shares for every share they own after market close on june 28th. so on wednesday, june 29th, shop will begin trading at its new split adjusted price. so wednesday is when you can expect the price of shopify to be one-tenth this, uh, the share price right now. that's when you're gonna get your additional nine shares for every one share you're holding. uh, and so there's the important date. so again, it's basically almost here: right on wednesday, uh, this will be trading at a lot lower price now. now, one question that i get all the time is: notike that the record date was june 22, right? so what happens if you purchase after june 22nd and before the stok split? do you still receive the additional shares? yes, okay, the only difference is, if you hold shopify, buy the record date, right, what happens is the company itself, shopify, will give you those nine additional shares for every share you hold. now, if you purchase after the record date and before the stok split date- the- you're actually going to be getting your shares from whoever sold you their shares. okay, you're not gonna be getting them from shopify, you're gonna be getting them from the person that sold you their shares. that's the only difference. but yes, you'll still get the nine additional shares, even if you purchase, you know, tomorrow or tuesday, okay? so just wanted to point that out there. i did get a lot of questions on that this week or last week. uh, now what's going to happen to the options? that's the next thing i want to tok about here, because, again, this is a question i get all the time as well. so the options are going to follow pretty much the same pattern as the stok split. so let me actually show you one example here. so let's say you bought a call expiring july 1st, which is this friday. let's say you bought the call at the 400 strike. so what's going to happen if you hold through the stok split, if you hold until wednesday? so, again, very similar to the stok split itself. what's going to happen is, let's say i bought one call option on wednesday. if you're still holding, you're now going to have 10 call options. okay, you're going to have 10 call options rather than one call option. now, the strike price is also going to be divided by 10 right, which is the stok ratio. so you're going to have 10 call options. each option would have a strike price: 1, 10 of what it is right now, meaning that the strike price of your options would have a 40 strike. so you would have ten call options with a strike of forty dollars each, and also the share or the, the options price right, which is thirteen ninety right around there, will also be divided by one tenth right. so you'll have ten call options, each with a strike of forty dollars, and each worth one tenth of the original option. so each one would be worth 139 rather than thirteen ninety. so that's what happens to the options if you hold through the stok split. now what can we expect to see from the stok split from now until the stok split and then after the stok split? okay, so shopify has made a pretty big run in the last uh week, even the last month, right. so, as you can see, it was down at 300 and now it has rallied up to around 386, so it's up a ton in just a short period of time, and so what we can do here is we can try to compare it t.

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Shopify Stock Will Make Millionaires | SHOP Stock Explained

what's up, guys? it's Rob here, and today we need to tok about Shopify, or shop stok, because this stok has been so oversold over the past year. it's gotten down to ridiculous valuations while all the all the while maintaining incredible fundamentals of the underlying company. we're going to break down what's happened with it over the past 52 weeks just about, and I'm going to explain why I actually just bought some earlier today, because this is such an incredible company and it also has a pretty cool mission. right, they're doing something pretty cool. so Shopify- for those of you who haven't heard of it- is a company that enables small businesses to engage in e-commerce. they also enable large businesses to engage in e-commerce, but they're essentially an Amazon competitor. they don't directly sell things themselves online like Amazon, but instead they provide a platform where people can create their own online stores and then sell things as a small business as a large business. anyone who wants can easily create a Shopify store and start selling stuff. I've done it. it takes maybe, you know, a couple of hours, with the layout they give you, to fully set up the thing. if you have the images and branding that you need, then you just throw it all together and boom, you have an online store. so it's a pretty cool service that they offer and it does directly compete with Amazon because it allows individuals to start selling products on their own websites and collecting their own revenues rather than going through Amazon. so it is an alternative to that and a lot of people don't like the fact that Amazon seems to be coming a big Monopoly, but Shopify is certainly helping out by helping to diffuse the e-commerce space and allow more people to engage in it, instead of it just being one big Monopoly like Amazon. they help with shipping and all kinds of stuff. so really cool business model. I've used them. they're very easy to use and a pretty- uh, you know- potentially profitable business when times are good, right, if you're selling the right product. so, with all that said, I'm going to break down what's happened with their stok price, because you can see it's Fallen dramatikally over the past year, as all things have. right is, we are in a recession right now and Shopify stok has suffered quite a bit now. over the past 50-ish weeks, just about you can see- we've moved down from highs to lows- down about 83 percent- and this is just going to give you an idea of the potential gains that could be seen if we did end up making back some of those losses. if we just got to where we were at the beginning of 2022, that would be about a 388 percent gain on Shopify stok. if you bought at its current price and if we moved back to the all-time highs which we've fallen from within a year, that would be a 522 percent gain. now, I'm not saying that's going to happen instantly. right, we are in the midst of a recession. a lot of stoks have been moving down and be, you know, for good reason. right, the fed's been really crushing us with these interest rate hikes. but Shopify, I believe, does have the potential to rise back to these numbers within the next couple of years, because they've been experiencing incredible growth even while we've been in recession. I'm going to break this down for you. we have, in 2022 to in the first half of 2022, they've reported 2.5 billion dollars in Revenue. now, if you annualize that number, since that's just the first half, assuming they'll do the same in the second half as they did in the first half, that's about five billion dollars in Revenue in 2022.. now, that's impressive because in 2021, their total revenue was 4.6 billion dollars, so they actually managed to grow their revenue in a year when the entire economy, when GDP, was shrinking. so very impressive stuff. now it's not as impressive as the growth that they saw going from 2020 to 2021.. from those years they saw 57 growth and going from 2021 to 2022, they only saw about eight percent growth. but eight percent growth for a stok that's actually, instead of growing eight percent moved down 80 percent is a really good buying opportunity in my opinion, right? I think that when you see that kind of stuff, that's a disparity between what the price potentially should be and what the price is, oftentimes induced by fear and a couple of negative catalysts that we're going to discuss now. before we break into that, I did want to show you that e-commerce, which Shopify mainly engages in, is still a rapidly growing area. these are the total revenue for retail e-commerce Revenue in the United States 2017 to 2022, with forecasts to 2025. so 2022, it's looking like we'll have about 875 billion dollars worth of e-commerce Revenue in the United States. that number is projected to grow to 1 300 billion, so 1.3 trillion dollars, in 2025. we're absolutely expecting e-commerce from retail to explode over the next couple of years and Shopify is one of the main enablers of that. if you look at the gross merchandise volume for Shopify in 2021, they had 175 billion. so about 20ish percent of what we saw in uh 2021 was from Shopify and that's a 40 increase- 47 percent increase from 2020 to 2021. another very impressive thing about Shopify I'll break down real quick. their market cap has fallen dramatikally over the past couple of months as their stok price has been crushed. they're currently sitting at a 36 billion dollar market cap. now what's really impressive about that is that they have cash reserves totaling 7.77 billion dollars. so essentially, when you're buying into this company with a 36 billion dollar market cap, 7.7 billion dollars of that you're just buying into cash. so you can almost just wipe off 7.7 billion dollars worth of their market cap in terms of what their business has going for it, because they've just got that cash sitting in their accounts and they can do whatever they want with that cash. obviously, they could spend it. they could try to use it to improve the business, do more research and engage in new retail opportunities. but while you're buying it, currently it's looking like they've got about 7.7 billion dollars in cash, and so that just makes the stok look even cheaper from a market cap perspective. so, especially regarding the size of this company, the fact that they are commanding 175 billion dollars worth of gross merchandise volume- so basically, how much people were able to sell with their services in 2021? that's absolutely massive and we should be seeing that number grow in 2022, despite the fact that we're in a recession. so really impressive stuff. now, if you're worried that they're just engaged in e-commerce, uh, that's mainly what they've been focusing on in the past, but they're also starting to Target physical retailers, after admitting that they've been overly aggressive in the e-commerce space. so one of the reasons why they did end up sinking over the past couple of months was, Unfortunately, they saw- well, fortunately, they saw- massive growth during the pandemic. everyone started moving online, shopping online, and we ended up seeing that growth slowed down. but Shopify had made some big bets on e-commerce. they hired a ton of new employees, some of which they ended up laying off after realizing that those growth trajectories weren't going to sustain themselves entirely. once again, they were seeing 57 growth over 47 growth year over year, and then they saw eight percent growth about this year- right if we're projecting forward what they could do for the rest of the year. so there have been some slowdowns, obviously, and that has partly led into the declines that they've seen, but I think that the declines have been greatly over exaggerated, partly because the fed's been so hawkish and has been raising interest rates. the fact that we've been in recession and pretty much every stok has been getting sold off, I think, seriously leads into the fact that this one has been getting sold off quite dramatikally. I think that we could see some real big gains in the near future future if the overall economy starts to tu.

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Shopify Stock Split: Is It A Buy? | SHOP

everyone stik with us versus herd. i'm going to be covering the shopify stok split and we're going to kind of determine: is it a buy? should we grab some shares? the stok split is going to be happening right now, at the time of the video. so if you don't always have shares, you can always buy stok, and that's that's the thing like. if you don't know what a stok split is, shopify is going for a 10 to one stok split. so that means if you have one share of shopify, of shopify stok, then you will have 10 after the stok split. or, if you want, you could always buy 10 after the stok split. same exact thing. they're going to give you an equal value- value in terms of a dollar amount. you're not going to make any more money or lose any more money on the stok split pending, if you know. obviously the market's going to go up or down, but they're going to give you the same value, but they're going to give you more shares of stok if you're a holder of stok. now, shopify announced on april 11th that they're going to be having a stok split. if we look at the, if we look at the chart here on april 11th- let's go back in here. i mean, this thing has already cratered from a high back in november 2021 of 1762 to- at the time it was like what april 11th was right here, it was around 600- 620 a share, so 600. so it's already down over 50- 60- that they announced a stok split and since then this stok has not gone up. it's gone basically straight down for the most part. they did have a little bit of earnings run up, but then a major gap down on earnings, which is kind of what i wanted to show you here, is if you look at their earnings, pull this up here we have shopify earnings right in here. so last the they missed on eps, they missed on revenue. i mean, this whole thing is is a disaster right now. and the thing is, the interesting thing is: so this is q1 2022, right, so going in, going into this year, so that's just q1. we have a long year ahead of us here. i mean, this is q1. we're gonna see what q2 reports here. q2, i don't think it's going to be any better since we're having- you know, retailers and inflation- a lot less spending. you know, if we go into the the full, let's go to the full chart here- or the last five year, we'll go to the maximum that you can go. right, let's go to the maximum available. and you know this stok, this dock has basically been going from about 25 up to 1700, which i mean this is still up big, even from 25 a share- 15 a share, i mean at 350. this is a win if you held it over the past five, six years and it really started to go. you know, basically ballistik during the pandemic, when we had the mean frenzy and then then they had, like these gross stoks you had, you know, amazon rip in shopify was ripping because it was one of those internet retailer. you know gross stoks, hype stoks, but this kind of goes to show you how big of a bubble we were in due to the stimulus printing. and you know, people really trying to partikipate and getting in on this bull run. if you made money during this, congrats. but if you're still holding, we are in big trouble right now. i mean this is right now. it is. it is testing right here the 2020 lows, which was about 315.. it's trading at 350 pre-split right now. it did hit a low of two- was it 295 or was it 303, somewhere around there? we'll call it 300, so it bounced off 300 and this did have an epic run pre-split. i mean, this ran from basically 300 up to 395. i think let's, let's get the right price. yeah, it went from 395.. i mean, this thing has been ripping all week and then today- you know it was a disaster- started to give it all back. but if you kind of look at, like, what did amazon do prior to the split? i have another video that i did about amazon pre-split, where amazon has done stok supplies before. shopify has not done a stok split before but amazon basically, you know, as another e-commerce stok like shopify. i mean shopify and amazon are always compared, i feel. so it's very comparable. again, this one, i mean, if you look at, you know shop amazon- i'm sorry this one split on june 6th, had a pre-run up, just like shopify, and has struggled to maintain or actually go up since the stok split. i mean this thing has been getting hammered all year and if you kind of mean it broke down away from this consolidation, i mean it had had 2020 again ripped up, all 20, 21 it was. it was stagnant all of 2021 and then pre-split and this is this is what i pointed out in prior stok splits for amazon. it always had this pre-run up. it would then, after the stok split, bounce, which it did, and then it gets demolished. it gets absolutely demolished. so for me, i am not going to be buying the shopify stok split. i'm gonna wait. i gotta wait till, you know, more data comes out, until inflation starts to go down. consumer spending is, is, is is probably starting to tighten due to inflation: gas prices, rent prices, mortgage payments, i mean the money is going for the consumer out the window and then they have less buying power than they had six months to a year ago due to inflation. so you know, looking at the chart here, i mean once this breaks, once it breaks like the 300 area and it breaks good, i mean the next, the next stop could be like 275. i mean it's going to look entiking after the stok split. but i, i mean i think, i think we still have to wait this one out because people are still- i mean they're not, they're not- spending any money. what the money that they are spending is on necessities and it's not going to be on, you know, websites or shopify or anything like that. i mean ads, a lot, a lot of this, a lot of the stoks that we're running ads on facebook. turnkey shopify stores are not gonna be making as much money or they're not gonna be as profitable as as consumer spending goes down. so i think this next quarter is gonna be interesting that you don't have to rush in and buy like the stok. you don't ever have to rush in because i need to get in on this opportunity, because i mean, if you look at- let's look at- google- google has a stok split coming up and when they announced, i mean this thing after they announced has been going straight down as well. we're getting no bounce. a lot, a lot of people were going back into last last couple years when, when the market was hot, when the market was hot. right now, these companies are doing stok splits when the market is terrible. we're having the worst start to a year ever. we're basically at the halfway mark and we're having we're having the worst start ever. but they're all thinking back like when, when tesla had their, their other stok split, let's pull up tesla real quick. when tesla had their stok split back in, what was this? let's pull it up here 2020.. they announced the stok split. i mean this thing went from. you know, basically this is kind of after the stok, but we went from 100 up to up to 500. they had a 501 stok split and actually tesla has another stok split on the way and this went bonkers after. however, if you look at this, this is when stoks really started to to to get crazy was at the end of 2020 into 2021, and this is what they were trying to replicate. where this is the stok split right here. they were trying to replicate a run like this. what they're not accounting for investors right now, or not accounting for a lot of people that have bought, you know th. these runs are done. these runs are done, like you know, going to shopify, shopify. sorry, this is the same exact thing. no, stok split is just what happened tesla time, the stok split with the epic bull run that we had in this huge asset bubble that we are currently in. so i'm not gonna get trapped. we could be slow to buy stoks right now. just take it easy. this is not investment advice. as always, stay safe. day green is us first hurt.

Shopify Stock Split | Shopify 10-to-1 Stock Split | What the Shopify Stock Split Means

are you ready? ready, all right, let's go. kevin, here, top one to financial advisor: hey, best selling author, we are here to tok about the stok market. boys. it's days like this where the news just hits you in the face. so we've got two bits of breaking news this morning, which got me about my bed, and recording in the daytime, which normally i wait till after the day. everything is settled, and then i post a video at like 7pm. well, that didn't happen today. so so far, and the market is still currently moving, so things are moving as we speak- we got some big news out of shopify. shopify is looking to do a 10 to one stok split, but this stok split is very suspicious, or at least suspicious to me. okay, so they're looking to do a 10 for 10 to 1 stok split. the shareholders have to approve it. if this is approved, it's supposed to occur on june 28th. that means, if you own shares of shopify, it's basically taking a 10 bill and make it into ten one. i'm not gonna make or lose any money from it. i've said that over and over and over again for all the companies that are doing stok splits this year: tesla's looking to do one, amazon's doing one. google's doing one hell. by the end of this week we'll see who else is gonna do one. okay, uh, but that that's basically what they're looking to do. but the special and interesting thing about this- and i even think it relates to elon musk and twitter- is this the main reason. i was cited in cnbc and i'll put that um, that graphic or headline there. the basic the thing here is they say they're doing it to protect voting shares, partikularly for the ceo. remember, you know, i said this during the google video. we toked about google doing a stok split and how it was important and voting rights. i, i didn't say it was important. right, i did say voting rights are important when it comes to the stok market, um, for really like the founders and the higher ups in the company. but in either case, here's the thing: when i toked about google, i said google g-o-o-g-l has voting rights. one share, one vote. g-o-o-g has no voting rights. but then there are special shares that mean you cannot buy for the founders, and i think i- i may get the number wrong here, so correct me if the number is wrong- but they get special voting rights. that's like 10 to one. so for every share that the founders have who start at google, one share equals 10 voting rights. so, basically, you know you get one vote, i get 10.. and if i got i don't know a million shares, then i'm getting that times 10 and whatever. basically, whatever i vote for is gonna happen. now, companies, you know they vote for tons of different things. who's gonna be the ceo? who's gonna be on the board? who's doing the taxes? should they create a new product? like different different things? they they vote on, but you have power and sway. well, shopify is looking to say: look, let's, let's split, let's give people something to be excited about because the company is down 50 in the last year. let's give them something to tok about, give them something to be excited about, rather, and then let's protect our ceo and give him some more power when it comes to voting rights. now, why is this suspicious, or at least interesting to me? well, what company is out there that's in the news that did not have this special protection? twitter. twitter did not have this special protection and it allows someone like elon musk to buy up 9.1, 9.2, whatever it was of the company and make a whole bunch of headlines in just a week. and it the stok swung up and stok is swinging down and it's doing a whole bunch of stuff really based on the 280 characters or 240 characters that he puts out every other day, and a lot of companies don't want to be in that space. that's not to say that elon musk is going to also buy shopify, but it does protect the company, or could protect the company rather, for what we call activist investors, which elon musk i guess tiknically kind of is. but activist investors are basically either a collection of individuals or, like a company or a firm that tries to strategically come in, buy up certain companies or buy an influence in certain companies and then start to make changes. in some cases it can get kind of weird and kind of nasty where they say: look, your company is down 50, i have the answers. i. i now own five percent. i want to fire the ceo, bringing my own guy and then change everything about how this company operates. if i own shopify or if i own, you know, a major corporation, not gonna kick me out of the company, i found it. but if you don't have these voting shares, that can happen to you, and this does not exactly happen at twitter, but it's, you know. in essence, it kind of did. for example, jack dorsey did step down. now he stepped down back in like november of last year, 2021. so again, it's not the exact same thing, um, but now you got somebody who owns. he's the biggest shareholder now and he was going to be on the board. if we found out today that he's not going to be on the board, and it's just like a weird situation. but now you're at the helm of whatever elon musk tweets and you can't ignore it because he's the largest shareholder. and you didn't protect yourself. twitter didn't protect itself by saying: i'm the founder, jack dorsey, or i'm the ceo, uh, i get five shares or five votes for every one share that elon musk has, so it puts me in a better position. didn't happen. so now twitter is kind of up in the air. we'll see what happens there. so shopify is looking to protect itself from the possibility of that happening. we'll see if it works again. the company is down now. i have two. i think it's 237, before the market is moving. i think shopify is up. uh, just a little bit today so far, but i got 237 dollars in it. i'm not doing anything with it. this was primarily from like free shares from, uh, you know, like affiliates, like hey, you're gonna share, i get to share. i mean it's whatever, i'm not overly concerned. um, now, if you are, look, if you don't own shopify and you are looking to get into it, i i don't know, i'm not sure if interest rates and the total tik environment is the best place to jump into a company like this, because again, you're down half. we don't know if this shareholder or the stok is going to be approved and what the impacts will be if it is. generally, yes, companies do tend to rise a bit after they do a stok split, but is it really going to raise more than 50 percent just for you to break even? ish, that's that's. that's a tough, uh tough battle uphill. so be careful. i don't think this is an investing opportunity, but it is something to pay attention to because, for whatever reason this year, yeah, amazon tesla again. i say tesla again because they did stok split in 2020, but you got amazon tesla, google, perhaps shopify, all trying to do major stok splits in 2022. i have not exactly figured out why they're all looking to do it this year and what makes it super crucial for right now, but we do know, again the general impacts of what that could mean when the stok split occurs. so pay attention to it again, if it happens. i think it was june 28th, what's the date? um, we'll, we'll see it's. it's a very interesting maneuver, um, and things that we're seeing in 2022 with both shopify and also twitter. keep your eye on twitter and what happens there. i'm not investing in either one, because i don't. i can't trust what's going on over there so far, and we've toked about some of those reasons too. all right, that is it for me. i will tok to y'all, probably tomorrow, provided that nothing else crazy happens today, and it is not even. it's not even noon. all right, i'll tok to you later. bye.

Shopify Stock @ $35: CHEAP or Value TRAP?

hey, what is going on, guys? my name is nick, and in today's video, i'll finally be giving an update on shopify stok, one stok that i've been extremely bullish on over the past few months. as of now, shopify stok trades for around 35 us dollars, or 46 canadian dollars, after its 10 for one stok split that took place a few weeks ago, which, in all honesty, was not necessary at all, considering how far the stok has already fallen. just looking at a five-year chart, we can see how shopify's meteoric coveted gains were washed away within months, now being down nearly 80 from november 2021.. guys, i'll be completely honest and say that i did make a mistake and starting to buy shopify stok too early, when it had only dropped about 30 percent at that point, but nowadays, with the stok trading below its march 2020 coveted lows, we really do need to ask ourselves: is shopify stok actually a really good buying opportunity at these levels or is it a busted growth story? and in this video, i'll be answering that question, right after analyzing their business fundamentals, the stok valuation and then finally giving you all my thoughts on shopify. so i would really appreciate you dropping a like on this video to help support my channel and, if you haven't already, please consider subscribing for more future content. and, with that being said, let's get straight into the video. alright, so the last time shopify reported earnings was on may 5th for their q1 2022 report, while they will be reporting their q2 earnings on july 27th, in a few weeks. if you weren't already aware, shopify reported q1 revenue growth of only 22 percent, which was down significantly from the prior quarter, in which they reported revenue growth of 41 in q4 2021, and although this growth rate might sound disappointing, shopify was lapping q1 2021, in which they had the highest revenue growth of the company's entire history as a public company, that being 110 year-over-year, which is absolutely ridiculous. so, naturally, the comps are extremely difficult in 2022 for shopify, since they are lapping that 2021 period where they were benefiting from those coveted gains and the stimulus checks, but i do believe this will change again going back into 2023, where their revenue growth should re-accelerate once again. furthermore, shopify changed the terms to make selling in their app and theme stores free for partners up to their first million dollars annually, terms that were not in place in q1 2021. so, while this might be a short-term headwind for shopify, it's the best move long-term, in my opinion, as it will attract many more developers to their app and theme stores, as well as increasing the overall value proposition for their merchants. as for the bottom line, shopify was barely profitable in q1, having adjusted net income of 25.1 million dollars, or 20 cents per diluted share, compared with adjusted net income of 254.1 million dollars, or two dollars and one cents per diluted share, for the first quarter of 2021.. being a company with very low profitability during these inflationary times, i will admit that there is quite a bit more risk investing in shopify versus another company like google or tesla, for instance, and the fact that they've been increasing their marketing and advertising, spent significantly year over year with new free trial offers that i haven't seen before. this does signal to me that shopify is seeing a decline in natural demand for their services, but down the road, i do believe that shopify can be a very profitable business model, given that they do have that subscription based revenue. it'll just take some time to achieve the scale necessary to reap those rewards, like adobe has now with their subscription-based services, like for photoshop and premiere pro. so then, what about shopify's balance sheet? well, as of q1, they have cash and cash equivalents of 7.25 billion dollars on the balance sheet. however, as you'd know if you've been following shopify lately, they did just close on their acquisition of deliver, which is an asset light ecommerce fulfillment service. the acquisition of deliver enables shopify to create an end-to-end logistiks platform to unlock fast and easy fulfillment for their merchants. to build out the shopify fulfillment network, or sfn. the total proceeds of the transaction came out to 2.1 billion dollars, where shopify is paying 80 in cash, which does come out to 1.7 billion dollars in cash. as a shopify investor, i do believe this acquisition was necessary in order for shopify to remain competitive with amazon, which also did just release their buy with prime service, and, of course, they are now more of a direct competitor to shopify anyways, after accounting for the acquisition of deliver, shopify would have net cash of 5.6 billion dollars at the end of q1, but this will likely be below 5 billion at the end of q2 because of other expenses and depending on shopify's cost control throughout this next quarterly update that we see. the possibility does exist that management might want to bolster that balance sheet in order to increase the amount of cash they have, either by diluting shareholders or raising debt. however, i don't think that will be necessary until at least 2023 and if they don't achieve positive cash flow by that point. now for looking at shopify's valuation. there is no denying the fact that it is far cheaper than it was trading back the pandemic. in fact, it is over five times cheaper. so here we can see shopify's price to sales ratio over time, which is the best ratio to use for a largely unprofitable business. in my own opinion. that is growing very quickly. right now, shopify has a price to sales ratio of around nine, and to find it this cheap in the past, we'd have to go all the way back to july of 2016.. so, in other words, shopify is trading as if it's a dead growth story, and it has not been trading this cheap within the past five years, even after the insane coveted crash back in march of 2020.. overall, given shopify's incredibly hard comps that they're facing in 2022, and given the fact that the e-commerce industry is still set to boom for many, many decades to come, and the fact that shopify's revenue will probably re-accelerate in future years, this is presenting a pretty good buying opportunity in my own opinion. and to prove my point, we can take a look at shopify's website traffic, like we did before q1, as i pointed out, a few months ago, shopify's web traffic began increasing in q1, which led to another record quarter, especially in terms of shopify plus subscriptions. however, i do think that the number of subscription conversions per website visit have gone down drastikally since covid. otherwise, q1 growth would have been significantly higher than i predicted it to be. so, even though we are seeing a huge spike in shopify's website traffic going into q2, this doesn't necessarily tell us what the revenue figure is going to be, but of course, this is a really good sign that shopify is continuing to grow their business. cena's june 2022 web traffic is up over 200 compared to june 2021. this greatly contrasts with the stok price having dropped about 80 percent over the past six months, so it could be presenting a great buying opportunity then, on a quarterly basis, q2 2022 web traffic is up 138 year-over-year and also represents growth of 31 quarter over quarter, which are both massive increases. but if we contrast this to amazon's website traffic, which is a huge overall indicator for the e-commerce industry, we can see that their website traffic is down year over year by about 10 percent and it is flat quarter over quarter. so it's pretty hard to understand why shopify's website traffic is absolutely booming, but then amazon's is actually down year over year. but this is a very good sign for shopify, in my own opinion. i'm hoping that this does lead to much higher conversions and higher revenue in q2, but i guess we'll have to find out on july 27th. so, anyways, to answer the question that all of you have been wondering: is shopify stok a buy right now, or should you wait?