Shopify: Its Market Cap Is Already A Quarter Of Its $849 Billion TAM

What happened: A Seeking Alpha analyst reviewed Shopify, citing strong fundamentals and rapid growth but a stretched valuation, and rated the stock a Hold. Key numbers: Q2 revenue grew 34% to $3.6B. Operating income rose 67.7%. Free cash flow margin reached 18%. Forward P/E is 107.3x. Market cap is $222B against an $849B TAM. Why it matters: The analyst says fundamentals are excellent but the valuation already prices in much of the company's future potential, so the rating is Hold rather than a buy.

A Seeking Alpha analyst reviewed Shopify, citing strong fundamentals and rapid growth but a stretched valuation, and rated the stock a Hold.

The analyst says fundamentals are excellent but the valuation already prices in much of the company's future potential, so the rating is Hold rather than a buy.