Shopify Inc (SHOP)

[Plegee]

Earnings per Yahoo listed for August 1st before the market open; estimate $-0.07. Last 3 week correction was healthy and needed for this stock; gives it a decent base to work off of. Would like it to trade and close above the 50 dma this week currently listed at $89.24. Some resistance at $90.50 area.

Fundamentally, SHOP is showing strength. The 2015 agreement with Amazon allowing SHOP customers to seamlessly integrate both AMZN and SHOP platforms seems to be contributing; SHOP's 1st qtr year-over-year revenue up 75%, with its Merchant Services Revenue increasing 92% year-over-year during the previous quarter. The recent May equity raise went very well, the underwriters even exercised their option (the "Over-Allotment Option") in full to purchase an additional 825,000 Class A subordinate voting shares. The $575M raised should be enough working capital for the immediate future to broaden the company's market share and enhance their data infrastructure and operations as well. And remember, the company in May raised their top line to $630M for the current year.

Into earnings, stock could very well continue to show strength provided the market remains intact. Plan to continue buying more shares through put selling. Strong stock with good long term prospects.