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The Intrinsic Value PodcastPublished 2026-09-03
“Ranking our Portfolio Watchlist – Meta, CSU, Copart, Shopify (Tier List)”
$SHOPNo side taken
Shopify has strong fundamentals (32% growth, margin expansion) but high valuation and unresolved AI questions lead to a neutral/negative current stance ('too hard pile', 'D' rating).

I'm actually working on an updated podcast on Shopify. So, that'll be be coming out in about uh a month or two.

All right. Now, an hour and 40 minutes down and two companies to go. Um, how about we do we do Shopify first? It's a company that was covered a while ago on the podcast.

Older record
The Intrinsic Value PodcastPublished 2026-08-20
“Ranking SaaS Best Buys Today and Long-Term + Watchlist Review”
$SHOPNo side taken
Shopify has strong fundamentals and long-term upside but is expensive and carries competitive risks.

Um so especially here chat if you know something that we don't know if we're not up to date with this company uh please tell us otherwise Sean do you have an intuition let's say where to put Shopify.

Um I think when we covered it quality is good price was too high. Um I would need to check on the spot basically what we're talking in terms of where the stock has been going. Year to date we're down 7 and a half% that's not too much. 12 months, 6% up.

Um, so we're still trading at a pretty hefty valuation.

“The Best Tech Stock to Buy Now: Microsoft vs Meta vs Apple!”
$SHOPNo side taken
Shopify has a strong business model but is overvalued; not a buy at current multiples.

Um, interesting Shopify integration.

Shopify by the way is another great stock that thing is is continue to be just very expensive. Uh but is just a tremendous business model. It really really is a phenomenal business model. Um I just wish it were cheaper.

I'm going to have to keep going pretty soon. It's uh se look at this. Look at look at Shopify. Just this is probably the last stock we'll take a look at. 73 times earnings, 12 times revenue. free cash flow yield 1.3%.

But let's just look at some charts for Shopify. Look at this revenue curve. Really, really um fantastic. Maybe these guys can continue to go. I mean, what's neat about this business is they have fees associated with all the money that rolls through, right?

These guys host websites for online businesses. Um, they have tremendous back-end integr integrations and checkout optimizations and membership uh optimizations that make running a business at scale easy for small entrepreneurs.

And now even at even at midsize and large companies can use use Shopify. uh they take a fee. They use Brainree as their merchant processor uh and they get merchant processing fees on every dollar.

So think of them as like an American Express or a Visa that um takes a small percentage of all the dollars flowing through. That's a great business model. If you have trillions of dollars flowing through your network and you're getting fractions of a penny as that cycles through, you don't have to do a lot.

You don't have to sell the goods. That's what your customers do. They sell the goods and you just take a small small rip off all the money that runs through your infrastructure.

And what you have to do is maintain the infrastructure.

That's the earliest record
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