Like many growth stocks, profits aren’t the focus at this stage of the game. That’s where revenues come into play.
Right now, Shopify is expected to grow sales 57% this year to $1.06 billion, making for its first billion-dollar year. That’s a fantastic achievement, and while growth is forecast to slow in 2019 to 39.5%, analysts are still looking for $1.48 billion in revenue then.
“For the most part, we’ve seen a flight to safety trade in many U.S. equities. We’re talking blue-chip stocks with dependable dividends and strong balance sheets, including aames like Johnson & Johnson (JNJ), Coca-Cola (KO) and Procter & Gamble (PG)”
In the event that the market is able to rally, Shopify stock price likely has upside back to downtrend resistance. However, I would not consider this growth stock to be a valid flight-to-safety trade should further weakness ensue, even though it has held up well over the past few weeks.