Author Topic: SHOP - Shopify  (Read 15873 times)

Spekulatius

  • Hero Member
  • *****
  • Posts: 3894
Re: SHOP - Shopify
« Reply #40 on: January 13, 2020, 03:20:38 PM »
the same analogy can be said about AMZN 10 years ago vs Berkshire 10 years ago - but clearly for the last 10 years AMZN has been a better investment.
gary

So this is the next Amazon?

AMZN 10 years ago didnít trade at the valuation that SHOP is trading now.
Life is too short for cheap beer and wine.


gary17

  • Hero Member
  • *****
  • Posts: 1234
Re: SHOP - Shopify
« Reply #41 on: January 13, 2020, 03:59:57 PM »
the same analogy can be said about AMZN 10 years ago vs Berkshire 10 years ago - but clearly for the last 10 years AMZN has been a better investment.
gary

So this is the next Amazon?

AMZN 10 years ago didnít trade at the valuation that SHOP is trading now.

i am by no means suggesting SHOP's valuation makes sense
but two things that are diff than 10 years ago:
1) the e commerce platform is much more developed today (IG, FB, etc)
2) interest rates are higher 10 years ago.
it's hard to do an apples to apples comparison...
Gary

Liberty

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 11789
  • twitter.com/libertyRPF
    • twitter.com/libertyRPF
Re: SHOP - Shopify
« Reply #42 on: January 13, 2020, 05:15:44 PM »
AMZN 10 years ago didnít trade at the valuation that SHOP is trading now.

It was also a completely different business with different end-state economics (the retail part, AWS at the time was nothing). But definitely some of the same dynamics (investments in growth and underpricing to accelerate growth masking true earning power).
"Most haystacks don't even have a needle." |  I'm on Twitter  | This podcast episode is a must-listen