SHOP – Market expectations are for record-high Uniform ROA, but management has concerns about their costs, the potential for further operating losses, and future opportunities

• • • Shopify Inc. (SHOP:USA)currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 363.3x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about their bottom line and future opportunities
    • Specifically, management may be downplaying concerns about the cost of their cloud transition, and may be concerned about the potential for a continuation of operating losses seen in Q1. Also, they may be exaggerating the opportunities they see ahead of them, particularly in terms of their ability to scale the business efficiently