Shopify (NYSE/TSX:SHOP) Doesn’t Pay a Dividend, If the price continues to dip, when’s the best time to buy? – November 7, 2021,
So, for me, if a company doesn’t pay a dividend, for whatever reason, the goal has to be for the stock to appreciate in value, because otherwise, I’ll feel cheated. Does Shopify offer the same type of value as Amazon? I personally don’t think so, not yet anyway and Shopify is in a very crowded space in which it’s distinguished itself by being one of the more eCommerce easier platforms for brick and mortar stores to transition to if they also want to sell things online and potentially have access to the Amazon and Walmart customer base.
But from an internet marketing standpoint, I’ve been saying that WordPress sites like AliDropship may start to eat their market share ONLINE at least. This is not to say that Shopify doesn’t provide more value in other areas of eCommerce, but if the Shopify stock stops appreciating in value, in my world you get stuck playing the pump and dump game.
If you bought Shopify in 2017, life is good, but if you found out about Shopify in 2021, do you really want to be in this stock? Both Amazon and Shopify look like stocks that rose based on financial stimulus from governments of various different countries and because neither pays a dividend and uses the money to invest, one asks to ask if Shopify is making malinvestments?
Amazon provides sellers with a platform that offers free promotion, Shopify sellers have to spend extra for their promotion and this obviously has the ability to eventually see a decline in Shopify users. Although I write about AliDropship which is a derivative of WooCommerce, the eCommerce space is getting crowded, yes Shopify is the go-to solution for now, but eCommerce is a ruthless business, that even Walmart hasn’t figured out yet.
Amazon focuses on FAST SHIPPING, Shopify has their own fulfilment business, but in a way so does AliDropship which is Aliexpress focused. For lower prices, some people are willing to wait for prolonged shipping and as you might be aware, more sellers on Aliexpress are starting to make connections in North America to get their products shipped to customers much faster.
I bring this up because as far as eCommerce goes, I’m not exactly bullish on Shopify. I personally look at Shopify the way I look at Facebook and Twitter, I think WhatsApp and Instagram are some of Facebook’s best assets, but Facebook by itself reminds me of Myspace. Just looking at Twitter makes me nervous, I get Square and some of Twitter’s other asset buys, but I couldn’t own that stock because when I imagine it, I imagine junk.
Shopify, in my opinion, will have to buy more assets, it looks like a sinking ship, it reminds me a bit like Blackberry, it’s dominant now, but I don’t think it notices that it’s being surrounded by piranhas. Amazon made sure to differentiate itself with Amazon Web Services (AWS). This puts Amazon in a very lonely space with a high barrier to entry. I’m already an Amazon Web Services user. I’m not consciously aware of any Shopify services that aren’t in crowded spaces?
I think if stimulus stalls, interest rates rise and Mainstreet makes a comeback, Shopify might lose market share. At present Shopify is too expensive for me, I like Shopify in the $400-$700 range that’s where I’d consider being a buyer, Shopify at $1500? No dividend? Absolutely not!
Interesting times ahead