Group 1 - Shopify has removed its U.S. shares from the New York Stock Exchange and relisted them on the Nasdaq, likely to become eligible for the Nasdaq-100 index [1] - If selected for the Nasdaq-100, Shopify's stock could experience significant price increases, as seen with Palantir Technologies, which saw a 7% rise after its inclusion [2][4] - The Nasdaq-100 index includes 100 large companies and is reconstituted annually, with modifications possible throughout the year [3] Group 2 - Shopify's current market value is $131 billion, ranking it among the 35 largest companies on the Nasdaq, enhancing its chances for Nasdaq-100 inclusion [4] - Historically, companies added to the Nasdaq-100 have seen an average return of 16% in the 12 months following their inclusion [5] - The demand for stocks in the Nasdaq-100 is driven by numerous investment products tied to the index, which manage hundreds of billions of dollars [6] Group 3 - Inclusion in benchmarks is increasingly important for companies due to the rise of passively managed investment funds [7] - Shopify is a market leader in e-commerce software, with its merchants accounting for over 12% of online retail sales in the U.S. and 6% in Western Europe [9] - The company has a significant opportunity in wholesale e-commerce, which is projected to grow at 18% annually through 2030, and is already three times larger than retail e-commerce [10] Group 4 - Shopify reported a 31% increase in revenue to $2.8 billion in the fourth quarter, with strong growth in wholesale, offline retail, and international commerce [11] - Operating expenses as a percentage of revenue have reached their lowest level since Shopify's IPO in 2015, indicating improved efficiency [12] - Shopify's total addressable market is valued at $850 billion, with Wall Street estimating adjusted earnings growth of 26% annually through 2026 [13]

Core Viewpoint - The average brokerage recommendation (ABR) for Shopify (SHOP) is 1.84, indicating a consensus between Strong Buy and Buy, based on 43 brokerage firms' recommendations [2] Brokerage Recommendations - Of the 43 recommendations, 25 are Strong Buy and 2 are Buy, accounting for 58.1% and 4.7% of all recommendations respectively [2] - Despite the positive ABR, relying solely on brokerage recommendations may not be wise, as studies show limited success in guiding investors to stocks with the best price increase potential [4][5] Analyst Bias - Brokerage analysts often exhibit a strong positive bias due to their firms' vested interests, leading to a higher number of favorable ratings compared to negative ones [5][9] - This misalignment of interests can provide little insight into a stock's future price movement [6] Zacks Rank Comparison - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, which are shown to correlate strongly with near-term stock price movements [7][10] - The Zacks Rank is updated more frequently than the ABR, making it a more timely indicator of future price movements [11] Current Earnings Estimates for Shopify - The Zacks Consensus Estimate for Shopify's current year earnings remains unchanged at $1.49, suggesting steady analyst views on the company's earnings prospects [12] - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for Shopify, indicating a cautious approach despite the Buy-equivalent ABR [13]

Core Viewpoint - Dollarama Inc. has announced its acquisition of The Reject Shop Limited, Australia's largest discount retailer, for A$6.68 per share, valuing the transaction at approximately A$259 million (C$233 million) [1][5]. Company Overview - Dollarama is a Canadian value retailer founded in 1992, with a network of 1,601 locations across Canada, offering a wide range of consumable products and general merchandise at fixed price points up to C$5.00 [20]. - The Reject Shop, headquartered in Melbourne, operates over 390 stores across Australia and generated consolidated sales of A$866 million (C$779 million) for the last twelve months ending December 29, 2024 [4][20]. Transaction Details - The acquisition price of A$6.68 per share represents a 108% premium over The Reject Shop's 20-day volume-weighted average price of A$3.21 [5]. - The enterprise value of the transaction is approximately A$189 million (C$170 million) on a pre-AASB 16 basis and approximately A$421 million (C$379 million) on a post-AASB 16 basis, implying an 8.9x multiple on The Reject Shop's EBITDA (pre-AASB 16) [5]. - The Reject Shop may pay a fully franked special dividend of up to A$0.77 per share, which will be deducted from the cash consideration [6]. Strategic Intent - The acquisition aligns with Dollarama's strategy to expand into new geographies, leveraging its proven track record in Canada and Latin America [2]. - Dollarama aims to grow The Reject Shop's store network from over 390 locations to approximately 700 stores by 2034, indicating a clear path for future expansion [9]. Management and Integration - Dollarama plans to collaborate with The Reject Shop's local management team and its over 5,000 employees to execute its strategic vision, focusing on retail, merchandising, and operational expertise [3][8]. - The transaction is expected to have a minimal immediate impact on Dollarama's net earnings per share and a limited effect on its pro forma adjusted net debt-to-EBITDA ratio upon closing [7]. Approval Process - The transaction will be executed through an Australian scheme of arrangement and is subject to customary closing conditions, including shareholder approval and regulatory approvals, with closing anticipated in the second half of 2025 [10].

Core Viewpoint - Shopify's shares have experienced a 15.4% decline since reaching a 52-week high on February 18, primarily due to macroeconomic challenges and potential trade wars, although a recent announcement regarding targeted tariffs led to a 4.87% increase in share price [1][2]. Financial Performance - Shopify is currently trading at a Price/Sales ratio of 12.46X, significantly higher than the broader sector's 5.88X, indicating that the stock is overvalued with a Value Score of F [2]. - The Zacks Consensus Estimate for Shopify's 2025 earnings is $1.49 per share, reflecting a year-over-year growth of 14.62%, while the revenue estimate stands at $10.86 billion, indicating a 22.3% growth [16]. Market Position and Strategy - Shopify has been expanding its merchant base, benefiting from innovative tools like Shop Pay and the Shop App, which have contributed to a 39.1% appreciation in shares year-to-date, outperforming the Zacks Computer & Technology and Internet Services industries [7]. - The company plans to shift to a three-month paid trial in certain markets to enhance merchant retention, although this may negatively impact monthly recurring revenue (MRR) growth in the near term [5]. Product and Feature Development - Shopify has introduced over 150 new features to its platform, aimed at enhancing merchant operations and efficiency [10]. - The company is increasing its AI capabilities to assist both new and larger merchants in scaling their businesses [13]. Partnerships and Collaborations - Shopify continues to strengthen its partnerships with major brands and platforms such as TikTok, Instagram, and PayPal, which enhances its payment offerings and sales channels [14][15]. Conclusion - Shopify's growth in its merchant base and strategic focus on improving client offerings are seen as positive catalysts for long-term growth, despite facing macroeconomic challenges and a stretched valuation [19].

Core Insights - Splitit has launched a new Embedded Shopify App that offers one-click payment installments and all-in-one credit card processing, enhancing the payment experience for consumers and merchants [1][4]. Group 1: Product Features - The Splitit Card Installments app integrates seamlessly into the Shopify checkout process, allowing consumers to choose between full payment or installment options without any redirects or applications [2][4]. - The app is designed to reduce cart abandonment, which affects 22% of online shoppers due to complex checkout processes [2]. - As a white-label solution, the app allows merchants to maintain brand identity and control over customer data, ensuring a consistent brand experience [3]. Group 2: Market Reach and Opportunities - The Embedded Shopify App caters to shoppers in over 100 countries, enabling merchants to offer localized payment options and potentially access new markets and revenue streams [4][6]. - Splitit serves many of Internet Retailer's top 500 merchants and is accepted by over 1,500 eCommerce merchants across more than 30 countries [6].

Core Insights - The partnership between Coveo and Shopify aims to enhance commerce growth by integrating advanced AI solutions into Shopify's platform, addressing the complexities of large catalogs and operations [1][4] - Coveo is recognized as a leader in AI-search and product discovery, enhancing the shopping experience through personalized and enriched product discovery [2][6] - The Coveo AI-Relevance Platform™ provides scalable AI solutions that enable hyper-personalization and optimize business outcomes for enterprises [9][10] Company Overview - Coveo is a leader in the e-commerce sector, providing AI-driven solutions for product discovery, merchandising, and personalization, trusted by various B2B and B2C enterprises [2][6] - In 2024, Coveo was recognized as a Leader in the Gartner Magic Quadrant™ for Search and Product Discovery, highlighting its industry standing [2][16] - The Coveo AI-Relevance Platform™ supports over 40 million products and 100 million pieces of content, showcasing its capability to handle complex catalogs [6] Product Features - Coveo's AI-search offers multi-layered capabilities that adapt to shopper intent in real-time, enhancing conversion rates and revenue per visit [2][3] - Merchandisers can utilize empowered merchandising tools to fine-tune search results, product listings, and recommendations, supported by detailed reporting [2][4] - The platform includes generative experiences that guide customers through product discovery, leveraging expert content to enhance the shopping journey [6][9] Integration and Accessibility - The integration of Coveo with Shopify is designed to be straightforward, allowing merchants to link their Coveo license with their Shopify store easily [4][5] - Coveo for Shopify is currently available for exclusive access, providing merchants with advanced AI-search and product discovery functionalities [5]

Core Viewpoint - The current market conditions present a significant opportunity for investors to consider Shopify as a promising growth stock, especially given its recent price decline from February highs [1]. Company Overview - Shopify provides a comprehensive suite of e-commerce solutions, including online shopping carts, payment processing, marketing, and inventory management, serving approximately 5 million online stores [2]. Financial Performance - Shopify's gross merchandise volume (GMV) reached $94.5 billion for the last quarter, totaling $292.3 billion for the year, reflecting a 24% increase year-over-year. The company's revenue for the final quarter was $2.8 billion, with nearly $9 billion for the entire year, marking a 26% increase from 2023. Net income surged to over $2 billion in 2024 from nearly nothing [3]. Growth Drivers - The shift towards direct-to-consumer sales is a key driver of Shopify's growth, as more sellers prefer to establish their own e-commerce presence rather than relying on third-party platforms like Amazon [5][8]. - The e-commerce sector still has substantial growth potential, with only 16% of U.S. retail spending currently occurring online, leaving 84% for traditional brick-and-mortar stores. The global e-commerce market is projected to grow at nearly 15% annually through 2034, which is favorable for Shopify [10][12]. Revenue Resilience - Shopify's revenue model is largely recurring, consisting of subscription fees and per-transaction fees, which are expected to remain stable even during economic downturns. The company has a significant number of stores categorized as consumer staples, which may be less affected by economic headwinds [13][15]. Investment Opportunity - The recent market correction has led to a 30% decline in Shopify's stock price, creating a favorable buying opportunity. Analysts maintain a strong buy consensus with a target price of $133.27, indicating a potential upside of nearly 30% from current levels [17][18].

Group 1 - The REIT Forum offers exclusive investment ideas and access to subscriber-only portfolios [1] - Amrita leads a family office fund in Vancouver focused on sustainable, growth-driven companies [2] - The fund aims to maximize shareholder equity by meeting growth-oriented goals [2] Group 2 - Amrita has experience in high-growth supply-chain start-ups and venture capital [2] - Her work emphasizes democratizing financial literacy and simplifying complex macroeconomic concepts [2] - The Pragmatic Optimist newsletter has been recognized as a top finance newsletter [2]

Group 1 - The company aims to invest in firms with strong qualitative attributes, purchasing them at attractive prices based on fundamentals, and holding them indefinitely [1] - The investment strategy focuses on maintaining a concentrated portfolio to avoid underperformers while maximizing exposure to high-potential winners [1] - The company plans to publish articles on selected companies approximately three times a week, including extensive quarterly follow-ups and constant updates [1] Group 2 - The analyst has a beneficial long position in the shares of Shopify, indicating confidence in the company's future performance [2] - The article reflects the analyst's personal opinions and is not influenced by any compensation from external sources [2]

Group 1 - Shopify Inc. has resumed its growth trajectory after a brief post-pandemic slowdown, with top-line growth accelerating [1] - The company's stock price has experienced a sustained re-rating due to its commitment to profitable growth [1] - Management's focus on maintaining a strong balance sheet and effective leadership is emphasized as a key factor for long-term growth [1] Group 2 - The investment strategy highlighted involves identifying undervalued companies with secular growth potential [1] - The approach combines growth-oriented principles with strict valuation hurdles to enhance investment safety [1]