Dj Pixelfox Ab (Publ): Pixelfox Updates On The Development Of Userdesk

E-commerce platform Shopify Inc. listed a New York headquarters in a US regulatory filing for the first time, stoking speculation about a US move amid anxiety in Canada about capital flight south of the border, Bloomberg is reporting Thursday.

MT Newswires Canada notes Canadian trucking company TFI International earlier this week

reversed plans to move its headquarters south after pressure from investors.

In terms of Shopify, Thursday's report notes the Ottawa-founded company filed a 10-K annual report on Feb. 11 to the US Securities and Exchange Commission that mentions New York as a "principal executive office" alongside its Canadian address.

Shopify filed the domestic issuer 10-K instead of the foreign issuer 40-F form, analysts at TD Securities Inc. said in a note. They highlighted that the form contains a US employer identification number, a "key consideration" for FTSE Russell and other significant US index providers.

Shopify also reordered how it reported segmented assets, "which flips the geographic breakdown" from majority Canadian to majority US.

"Since the country with the majority of assets is now the US and that matches the HQ, we expect that SHOP will be eligible for inclusion in the US indices at the next annual review in June," the note added.

(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Wedbush hosted Carrie Gillard, Director of Investor Relations at Shopify for a meeting with investors. The discussion covered a range of topics including (1) guidance commentary, (2) areas of investment, (3) enterprise growth, (4) international expansion, and (5) drivers of take rate expansion.

"We continues to view Shopify as the dominant eCommerce software platform with a large TAM opportunity, considerable pricing power within its subscription services, and ongoing payments expansion with expected GPV of $230B+ this year."

Maintain Outperform rating and US$140 PT.

The advent of the internet and digital technologies has revolutionized how business is conducted, giving rise to the booming phenomenon known as e-commerce. Thus, investors could consider watching fundamentally sound e-commerce stocks, Coupang, Inc. , Etsy, Inc. , and Shopify Inc. , which are redefining online shopping.

The global e-commerce market is driven by the increasing integration of advanced technologies such as AI, VR, and AR, the growing inclination of consumers towards online shopping, rising investment, growing collaboration, and increasing government initiatives. Looking forward, IMARC Group expects the e-commerce market to grow at a CAGR of 25.8% by 2033.

Moreover, the recent rise in digital literacy has led to an influx of investment in e-commerce firms, leveling the market for new players to set up their base while churning out innovative patterns to disrupt old functioning. Rising investments in the e-commerce sector offer e-commerce platforms a range of opportunities.

Considering these factors, let’s take a look at the fundamentals of the three Internet stock picks.

Stock #3: Coupang, Inc. (CPNG)

CPNG owns and operates retail businesses through its mobile applications and Internet websites, primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments.

CPNG’s 28.97% trailing-12-month ROCE is 166.8% higher than the 10.86% industry average. Furthermore, the stock’s 6.31% trailing-12-month ROTA is 67.6% higher than the 3.76% industry average.

During the fiscal third quarter that ended on September 30, 2024, CPNG’s net revenues increased 27% year-over-year to $7.90 billion. Its net income was reported at $64 million, and EPS came in at $0.04. The company’s adjusted EBITDA increased 44% year-over-year to $343 million.

Analysts expect CPNG’s revenue to increase 24.1% year-over-year to $8.14 billion, with a projected EPS of $0.01 for the fiscal quarter ending December 2024. Moreover, the company has surpassed consensus revenue and EPS estimates in three of the trailing four quarters, which is impressive.

The stock has gained 5.5% over the past three months to close the last trading session at $25.52.

CPNG’s POWR Ratings reflect its positive outlook. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

The stock has a B grade for Sentiment and Momentum. CPNG is ranked #43 out of 49 stocks in the Internet industry.

Stock #2: Etsy, Inc. (ETSY)

ETSY operates two-sided online marketplaces that connect buyers and sellers in the United States, the United Kingdom, Germany, Canada, Australia, and France. Its primary marketplace is Etsy.com, which connects artisans and entrepreneurs with various consumers.

ETSY’s trailing-12-month ROTC of 13.50% is 116.7% higher than the industry average of 6.23%. Also, the stock’s trailing-12-month ROTA of 12.54% is 233.2% higher than the industry average of 3.76%.

For the fourth quarter that ended December 31, 2024, ETSY’s revenue increased 1.2% year-over-year to $852.16 million. Its net income came in at $129.91 million, while its net income per share increased by 66.1% year-over-year to $1.17. Its non-GAAP EBITDA went up by 6.4% from the prior year’s quarter to $250.64 million.

Analysts expect ETSY’s revenue for the first quarter ending March 2025 to increase marginally year-over-year to $650.23 million. Street expects its EPS to be $1.05 for the same quarter, up 9.5% year-over-year.

ETSY’s stock has soared 2.2% over the past three months to close the last trading session at $51.53.

ETSY’s robust fundamentals are reflected in its POWR Ratings. ETSY has an A grade for Quality and a B for Momentum. It is ranked #31 out of 49 stocks in the same industry.

Beyond what is stated above, we’ve also rated ETSY for Growth, Value, Stability, and Sentiment. Get all ETSY ratings here.

Stock #1: Shopify Inc. (SHOP)

SHOP is a commerce technology company that provides tools to start, scale, market, and run a business of various sizes in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.

SHOP’s 19.58% trailing-12-month ROCE is 296.3% higher than the 4.94% industry average. Furthermore, the stock’s 6.81% trailing-12-month ROTC is 113.3% higher than the 3.19% industry average.

For the fiscal 2024 fourth quarter that ended on December 31, 2024, SHOP’s revenues increased 31.2% year-over-year to $2.81 billion. Its gross profit grew 27.3% from the prior year’s quarter to $1.35 million. The company’s net income increased 96.8% year-over-year to $1.29 billion.

Shares of SHOP have surged 69.9% over the past six months and 57% over the past year to close the last trading session at $127.66.

SHOP’s POWR Ratings reflect prospects. The stock has a B grade for Growth and Momentum. SHOP is ranked #13 in the same industry.

In addition to the POWR Ratings highlighted above, one can access SHOP’s ratings (Value, Sentiment, Quality, and Stability) here.

What To Do Next?

Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:

3 Stocks to DOUBLE This Year >

SHOP shares were trading at $123.79 per share on Thursday afternoon, down $3.87 (-3.03%). Year-to-date, SHOP has gained 16.42%, versus a 4.05% rise in the benchmark S&P 500 index during the same period.

Financial stocks were decreasing in Thursday afternoon trading, with the NYSE Financial Index dropping 1.5% and the Financial Select Sector SPDR Fund (XLF) down 2%.

The Philadelphia Housing Index and the Real Estate Select Sector SPDR Fund (XLRE) were fractionally higher.

Bitcoin (BTC/USD) was increasing 1.8% to $98,375, and the yield for 10-year US Treasuries was falling 3 basis points to 4.51%.

In economic news, US initial jobless claims rose to 219,000 during the week ended Feb. 15 from an upwardly revised 214,000 in the prior week, the US Labor Department said Thursday. The expectations were for 215,000 in a survey compiled by Bloomberg.

The Conference Board's measure of leading indicators fell 0.3% in January, below expectations for a 0.1% decrease in a survey compiled by Bloomberg.

In corporate news, Affirm and Shopify said Thursday they were expanding their partnership, with Affirm becoming the exclusive pay-over-time provider for the Shop Pay Installments program in the US. Affirm shares were shedding 3.5%.

Allstate shares were falling 1.8% after it said Thursday its estimated catastrophe losses for January reached $1.08 billion, or $849 million after tax.

United Bancorp shares gained nearly 2% after it said Thursday its board has declared a special dividend of $0.1750 per share.