Globe and Mail Comments on the Future of Shopify Share Price

The Globe and Mail reported that Shopify (NYSE:SHOP) stock is down, but the company hopes to weather the market downturn to see an increase in share price.
According to a press release:

The Globe and Mail reports in its Saturday edition that Shopify had one of Canada’s most successful initial public offerings last year. The Globe’s David Milstead writes, however, that has not stopped the market from hitting it in a sector-wide downdraft. Perhaps the problem with tech stocks is the fear of global recession; perhaps it’s LinkedIn Corp.’s fault for dramatically scaling back its expectations for 2016. Regardless, Shopify is down 20 per cent so far in 2016. That will change Wednesday, when the company releases earnings. “There’s one thing we know having covered tech for many years and it’s that when growth breaks — look out, particularly if it’s generously valued,” Cormark’s Richard Tse said in a recent report. The risk telegraphed by LinkedIn and others — slowing enterprise spending, which ran counter to expectations heading into 2016 — sent high-growth tech names tumbling. Revenue estimates for companies that have reported so far in 2016 are down slightly. “We see Shopify as the best-in-class SMB e-commerce software,” said Wedbush analyst Gil Luria, who has an “outperform” rating and $25 (U.S.) target price, versus Friday’s close of $19.33 (U.S.) in New York.

 
Click here to read the full press release.