Shopify Q3: great quarter, nervous stock 🛍️
Yesterday, before results, I sold 18 of my Shopify shares at around $157.
Why? I'm changing how I invest. Fewer holdings, but bigger ones. Every position needs to be at least £10k, so I'm putting my money behind the companies I believe in most instead of spreading it thin. Shopify was a small position, and going into results it was priced for perfection.
So I took some profit to help build up my bigger positions.
The results today:
• Revenue $3.74bn, up 32%
• GMV $119bn, up 29% (just under what analysts expected)
• Operating income up 66%
• Free cash flow margin 22%, up from 18%
A strong quarter, but the stock still slipped on that small miss.
My take: after this dip, I think Shopify is trading quite close to its fair value. And Q4 is its biggest quarter. Black Friday, Cyber Monday and Christmas shopping all run through Shopify stores, and I expect consumer spending to make it a strong one.
I still hold about 59 shares. It's under my £10k minimum, so I'll either build it back up at the right price or exit.
