Shopify Analysis

June 8, 2017 Notes

The Next Amazon.com
  • Rule breakers
  • Ski bum with world class coding skills
  • 36-year old multi-millionaire, AMazon for $3.19
  • e-commerce powerhouse
  • tiny company 1/100 size of Amazon
  • Company sells good on its website from 84,000 in 2013 to 325,000 today (2875 up)
  • merchandise sold across its platform $1.6B to $9.9B in 3 times/years?
  • Revenue $23.7m in 2012 now $258.9 million
  • single category good: Snowboard
  • platoform built scaled and modified to sell infinite variety of items to consumer
  • 325,000 clients: Budweiser, The Economist, P&G, Red Bull, tesla, Lakers
  • 150 countries
  • 9% stock = CEO; insiders=22%
  • Amazon capital intensive, margin 20-30% range
    • sort, store, cataog, package, ship
    • overhead cuts profit margin
  • All-in-one software solution, biz setup online stores
  • gross margin greater than 70%
  • e-tail tasks:
    • supporting multiple sales channel
    • monitoring inventory
    • processing payments
    • managing customer relationship: SEO&social media
    • Biz analytic
    • without rely on slew of diff third party vendors
  • whole packaged control from smartphone
  • if someone wants to start /expand online store: the only company they need to do business with
  • search more than "e-commerce"
  • Thestreet.com:little debt and excellent grwoth potential, ready to soar
  • Can do for online merchant what salesforce.com: Customer relationship management via cloud
  • CRM=1,164% since David Gardner recommended it
  • Eric Blecker
  • sells all-in-one e-commerce software suite that allows anyone with smartphone build and manage their online store
  • customers 325,000 companies in 150 countries: Google, Patagonia, Subway, NYSE
  • Revenue up 100% since 2012
  • Amazon closed down similar business unit: Amazon Webstore
  • others: Intuit, Maipchimp, Google, Uber, Pinterest, Twitter, Facebook
  • "Buy" button: favorite social media platform, making money off it too
  • Nearly doubled in value, David Gardner, back in February
  • IPO year and a half ago, shot up some 62%
  • Gardner recommend after other analyst=toolate
    • ISRG
    • top dog=dominates industry; first mover:disrupts existing industry and creates new one
    • rapidly emerging and highly disruptive new industry: plenty of room to run
  • Everlasting Portfolio
  • Now 325,000 could be 46 million more, only 1/100th of its potential market
  • $22T market opportunity, 172x bigger than Amazon sales last year
  • $5.7B still mid cap
  • Sales grow 86% in last quarter alone
  • 36-year old CEO betting $560,100,000 only 1 stock
    •
Stockgumshoe: Fool's "This little known stock Took on Amazon & Win"