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Analyst Alex Cutulenco’s Expert Stock Pick Soars 103% in Seven Months

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eCommerce play has been compared to Amazon.com

SmallCapPower | September 23, 2016: Mining stocks aren’t the only equities grabbing investors’ attention in 2016. Technology’s also been hot, specifically eCommerce. Ubika Research Analyst Alex Cutulenco was one the first investment professionals to write about an eCommerce play that some have compared to another Amazon.com in the making, on a much smaller scale of course.

SciVacIt was February 18, 2016, when Mr. Cutulenco first wrote (read the article) about Shopify Inc. (TSE:SH) (NYSE:SHOP). At the time, he believed additional recurring revenue growth for the Canada-based developer of online marketplaces for small and medium sized businesses would be driven by its merchant solutions offerings, and its strong balance sheet and cash position could be used to make strategic acquisitions.

Related: Shopify Inc. (TSE:SH): Is It Time For Stock Buyers to Move In?

Shopify: 3 Catalysts That Could Put Investors in a Buying Mood

Since that time, Shopify announced the acquisition of privately-held Kit CRM Inc., a virtual marketing assistant that leverages messaging to help businesses market their online stores. The Company also surpassed revenue and earnings per share estimates in its most-recently reported quarter (Q2). Shopify posted year-over-year revenue growth of more than 90%, thanks to a 70% increase in new customers and growing value-added services.

In the summer, the Company also announced a new partnership with Facebook Messenger to allow merchants to communicate with customers, as well as complete sales transactions, directly on the Facebook platform. In addition, Shopify raised its full-year 2016 revenue guidance to a high of $367 million, which would be an 80% surge from 2015. Even though the Company is still not profitable its sales growth trajectory and decreasing losses as a percentage of sales have some comparing it to the early days of Amazon.

Speaking with SmallCapPower recently, Alex Cutulenco said, “although Shopify is currently trading at a 12x revenue multiple, the business is easily scalable and there’s a real possibility they will reach $1 billion in revenues over the next couple years.”

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