Adding Shopify back to my Growth Portfolio

As a result of the recent 20% plus correction in share price, I am adding Shopify back to my Growth portfolio.

The stock now trades at a 12 times Enterprise Value / 2018 Projected Revenues, more comparable to its peers

However it is growing its revenues at a rate of 2.5-3 times faster than its peers.

The upcoming third quarter is expected to be very strong and will most likely result in short covering

Citron’s short recommendation was not based on fundamentals, but more on valuation.

Taking into account the high price volatility, I recommend only a small position not exceeding 1.5 – 2% of one’s total equity holdings.

Posted in Blog Post.

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