Will Shopify ever go back up in value? Is this actually an opportunity?

In the past few months Shopify did something unexpected, diving from record highs to a fraction of what it used to be worth.

Thankfully I didn't buy that much stock in Shopify, and I have insulated myself by diversifying my portfolio.

Indeed, Shopify isn't the only stock during badly lately. The looming war in Ukraine with Russia on the war path has put a dent in many of my long term "darling stocks".

But I see this as an opportunity.

For a fraction of the price someone like myself can now purchase Shopify and other stocks for a relatively low price, and when the market goes back to normal eventually (assuming Russia doesn't start a nuclear war) then the stock prices should go back up again.

Not just Shopify, but many other companies that have also been hard hit in recent months, and can be expected to rebound sharply once the looming war (and the pandemic) are both over.

This rough patch right now is an opportunity for investors. The trick is to be on the lookout for what stocks are likely to go up in value due to the war, and what stocks are likely to go up in value after the war is over.

Shopify will set record high before Xmas

I am predicting that Shopify (SHOP) will go to a new record high sometime in the next 4 months, likely before Christmas.

The stock is currently trading at around $1937 CDN, and set a record high back in July when it reached $2075.88.

My prediction is that it will top $2200 or more before xmas. Or more. And then stay in the $2100 to $2600 range during 2022.

Which means buying it right now is kind of a no brainer. Stocks like Shopify always go up before the Christmas shopping season, and because of COVID's continuing effect on online shopping, this effect should see a boost since Shopify is geared exactly towards that. Facilitating online shopping.

Shopify is also one of those Darling Stocks that I recommend just buying and keeping. Buy, keep, collect dividends.

Furthermore, you can buy fractional shares of SHOP via Wealthsimple. So you don't need to shell out $1937 to buy stocks in it, you can buy $1 or you can buy $100 or a $1000 worth. Whatever amount suits your fancy.

So let's say you buy $1000 worth when it is worth $1950 or less. Enough to buy 51.28 fractional shares.

Then the stock goes up $2200.

You sell your fractional shares for $1128.20.

Certainly a better move than keeping your money in the bank where you are getting in 0.05% in a TD High Interest savings account. Seriously. The interest rates are so low that even the "High Interest" savings accounts are giving you almost nothing.

0.05% interest over a 4 month period on $1000 is... 16 cents.

So you have to ask yourself, do you want to earn 16 cents of interest from your bank, or at least $128?

Or do what I do. Buy Shopify stock and then just keep it.

Right now it is my "Go To Stock" for whenever I have money leftover in my Wealthsimple account. Any extra money leftover from my other investments gets put into Shopify. That is how confident I am in it. I want to invest in other things, of course, in order to diversify my portfolio (I have a lot of stocks in Canadian gold, silver, copper, lithium and mining operations) and I need to offset my other investments with tech stocks and other topics. Shopify is one of the best Canadian tech stocks you can invest in right now.

The only real trick is that it is so expensive that many people have to buy fractional shares instead of whole shares. Hence why having a Wealthsimple account comes in handy.

Hello Canada! Why aren't you investing in the stock market?

Hello Canada!

Why aren't you investing in the stock market?

Is it because you have no money and/or no knowledge of how the stock market works?

Or is it because the big banks (eg. TD Waterhouse) are charging $9.99 to do one trade, which is a ridiculous fee when you consider that the trade is being done by a computer and not an actual person?

Well, I have good news!

#1. You can skip the fees by signing up for a Wealthsimple account for free

And they only charge 0.5% as an account management fee for accounts under $99,999, or 0.4% for accounts valued at $100,000 or more. Which means that if your account is quite small the fee is actually ridiculously small.

Plus right now if you join Wealthsimple, and use this link, then you get TWO free stocks to trade https://my.wealthsimple.com/app/public/trade-referral-signup?code=I30GVG *

* They don't give you the actual stocks, they give the cash equivalent of 2 free stocks after you deposit $100 into your trading account. The value of the stocks is random, but between $5 and $2500.

When I signed up I got a free Intel stock, which was valued at $69.10 CDN at the time, so for my $100 investment I already made $69.10. You do have to keep the funds in your account for a minimum amount of time in order to be able to cash out with it, but that is actually a silly idea because what you really want to do is invest it in a stock that will go up in value.

Furthermore, for each person who signs up using that link up above, I get 1 free stock too. So you can help support this blog by signing up too, and you get two free stocks, so this is a win-win situation for both you and me.

#2. You don't need to know anything about the stock market...

Because I am going to teach you!

Just subscribe to this blog, bookmark it, keep it on an open tab, and/or come back regularly for more stock tips.

Knowing nothing now isn't that big of a deal. What is important is that you LEARN how to invest in the stock market safely and get good returns on your money.

The Value of Shopify Stocks, 2016 to 2021

#3. Invest in Shopify

Why Shopify? I am going to show you why.

Shopify is a huge Canadian company which simplifies shopping for online stores. Shopping Simplified... = Shopify. How huge? It is a $250+ billion company. That's HUGE.

Every year people go shopping online for Christmas presents, and every year Shopify's stock goes up a lot during the Christmas holiday season - and the time period before and after Christmas.

So the lesson here is that if you want to invest in Shopify, you do it sometime in July, August or September... you wait for Christmas to come and go... and then you sell the stock sometime in January or February, when the stock will be worth roughly 40% more.

So if you invest $2000 now, by January or February the stock will be worth about $2800.

Or do what I do and just use the "Buy and Wait" approach.

The Buy and Wait approach is very simple. You're buying stocks that you think will go up in value over the long term. You buy them... and then you don't sell them for at least 5 years. Maybe 10 years. Maybe 20 or 25 years. You might never sell them. You might leave them to your children or grandchildren in your will.

Another thing I do is that I sometimes buy Fractional Shares.

This is the beauty of joining Wealthsimple. You don't need to pay $2000 to buy 1 stock of Shopify. Instead you can decide the amount you want to spend, as little as $1, and then buy a fraction of the stock. Not all brokerage companies allow you to buy Fractional Shares, but Wealthsimple currently allows people to do this with 14 specific stocks (10 American companies and 4 Canadian companies) which are pretty much guaranteed to go up in value.

The Canadian companies are:

• Shopify (SHOP)
• Royal Bank of Canada (RY)
• Toronto Dominion Bank (TD)
• Canadian National Railway Co. (CNR)

And the American companies are:

• Amazon (AMZN)
• Google (GOOGL)
• Apple (AAPL)
• Microsoft (MSFT)
• Facebook (FB)
• Netflix (NFLX)
• Tesla (TSLA)
• AirBnB (ABNB)
• Coinbase (COIN)
• Nvidia (NVDA)

 So for example, let's say you put $100 into your Wealthsimple account, Wealthsimple awards you with 2 shares - possibly worth about $25 each, and right away you have $150 in your account.

You take that $150 and you buy Fractional Shares of Shopify (SHOP)...

You wait until it goes up in value by 40% (to $210 CDN) and then you sell it and cash out.

Tada! You've made $110 and doubled your money in less than 6 months.

Or maybe you don't cash out. Maybe you wait 10 years and see what Shopify can do in the stock market. Which is my plan. I like the Buy and Wait approach.

I could sit on my stocks for decades and be quite happy to see my wealth grow. If I need to sell some stocks at some point because I want to buy a house (or a boat...) then that is my business. My choice.

#4. I only invest in what I call "Darling Stocks"

What are Darling Stocks?

Well, they're the stocks which have that nice upward curve to them. They're basically guaranteed to go up and keep going up. That is why I call them "Darling Stocks". They're very nice and I like them a lot.

They're keepers. You buy them, you keep them, and you make money off the dividends, and maybe you sell a few once in awhile because you need the money, but otherwise you sit on them and watch them multiply in value.

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