Here's Why Cathie Wood Bets Big on Shopify: ETFs to Play
Investing in speculative companies with long-term profit potential has been Cathie Wood's trademark strategy, and it has record to yield substantial returns over the years, per an article on investors.com. Two prominent profitable investments in her portfolio are Tesla TSLA and Shopify SHOP.
While Tesla's profitability is well-known, Shopify's recent strategic shift has positioned it for extraordinary earnings growth in 2023 and beyond. Shopify provides a multi-tenant, cloud-based, multi-channel commerce platform for small and medium-sized businesses (SMBs).
Merchants use the company’s software to run business across various sales channels, including web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. Additionally, the sale of Shopify's fulfillment business to Flexport on May 4 presents an opportunity for the company to cut costs.
Shopify’s platform enables merchants to manage products and inventory, process orders and payments, ship orders, build customer relationships and leverage analytics along with reporting from one integrated back office.
Shopify’s Earnings Estimates
Though Shopify is expected to report 33.33% decline in earnings in the upcoming second quarter, the stock is expected to record 400% earnings jump in the third quarter and 700% earnings growth in the full-year 2023.
Shopify’s Sales Estimates
Shopify is expected to report 25.11% increase in sales in the upcoming second quarter, 17.70% uptick in the third quarter, 20.38% increase in the full-year 2023 and 18.70% sales upliftment in the full-year 2024.
Shopify’s Agreement - Estimate Revisions
For the full-year 2023, 28 out of29 analysts upped earnings estimate for the company in the last 60 days while none went for the reverse move. One analyst increased estimate in the last 30 days with no analyst cut the same.
Surprise - Reported Earnings History
The last quarter’s Earnings Surprise is 125.00%. As a result, SHOP stock is flashing a buy signal, making it an intriguing investment opportunity for discerning investors.
The stock has a Zacks Rank #2 (Buy). The stock has a top momentum score of A. The stock comes from a top-rated Industry and Sector Rank.
Against this backdrop, below we highlight a few ETFs that are heavy on Shopify. Investors can bet on shoplifty through ETFs to lower the company-specific risks.
ETFs in Focus
ARK Fintech Innovation ETF ARKF – Shopify has 10.94% Exposure
Bitwise Web3 ETF BWEB – Shopify has 8.27% Exposure
First Trust Dow Jones International Internet ETF FDNI – Shopify has 8.06% Exposure
Global X E-commerce ETF EBIZ – Shopify has 7.03% Exposure
Franklin Disruptive Commerce ETF BUYZ – Shopify has 6.39% Exposure
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Tesla, Inc. (TSLA) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
First Trust Dow Jones International Internet ETF (FDNI): ETF Research Reports
Global X E-commerce ETF (EBIZ): ETF Research Reports
ARK Fintech Innovation ETF (ARKF): ETF Research Reports
Franklin Disruptive Commerce ETF (BUYZ): ETF Research Reports
Bitwise Web3 ETF (BWEB): ETF Research Reports
