As investors punish Shopify, these 15 ecommerce companies are expected to grow sales the most through 2023

Shopify had a blowout fourth quarter, with sales rising 41% from a year earlier, the company reported after the market close on Feb. 15.

Sales are the main objective of a company working at the forefront of the shift to ecommerce. But Shopify’s stock fell 26% over the following two trading sessions, even after company reported results that came in ahead of analysts’ expectations for revenue and earnings.

Read: Shopify sees a sales slowdown in the first half of 2022.

The above headline from Barron’s spells out the problem in this market environment for any highly valued tech stock: Even in a growing economy with better-than-expected retail sales, if a company’s own sales outlook for the months ahead disappoint investors, the stock can crash.

While we cannot predict which highly valued ecommerce companies might be next to disappoint investors, we can look ahead to see which are expected to increase sales the most quickly. A list of these expected rapid-growers derived from the holdings of three ecommerce exchange-traded funds is below.

A high valuation in a touchy market

Here’s a three-year price chart for Shopify Inc.
through the close on Feb. 15 — that is, before the company announced its fourth-quarter results:


The stock was up fivefold for three years before Shopify put out its fourth-quarter results. And the stock was trading for 14.5 times the consensus forward sales estimate among analysts polled by FactSet. That’s a very high valuation when compared with a price/sales valuation of 2.6 for the S&P 500
and 2.9 for a venerable internet services highflyer such as Inc.

Investors were paying through the nose for Shopify’s stock. Then again, the stock had traded as high as 47.1 times the consensus forward sales estimate in July 2020.

Three ecommerce ETFs
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Organization or technologies? Two-tier mix of techniques expected to progress in the 2020s

Electronic is not the only transformation heading on these times — there is also a profound career transformation reshaping the roles and aspirations of the men and women constructing the electronic earth. This is generating some confusion in the know-how career place, as tech professionals are becoming instructed they need to have to fork out extra consideration to acquiring business enterprise skills more than their deep technological expertise. 


Image: Joe McKendrick

Although tech managers and specialists are evolving to extra company-centered roles, they also have to have to provide their technological innovation expertise to the desk as properly. “Some technologists who want to stay fingers-on with deployment and innovation” — and which is alright, says Haluk Saker, senior vice president for Booz Allen Hamilton. “Companies are creating way for deep complex leadership and recognizing the benefit that senior IT engineers provide to govt-stage discussions and selection-earning. For people who are passionate technologists, who want to remain in the trenches, it is really vital to come across corporations and cultures that have produced technological management a priority.”  

To address problems via know-how, “it is not likely to be about a new fix or functionality,” claims Saker. “Tomorrow’s leaders will require to have a dual focus that balances specialized skills with immersion in the mission.”    

Welcome to the era of the renaissance technologies skilled, who desires to be equipped with two tiers of expertise, giving an potential to look at problems from both equally specialized and folks views. The 2020s enterprise needs that, authorities throughout the company engineering landscape concur.

Know-how capabilities needs haven’t absent away, but the concentration has shifted absent from standard coding, integration and techniques effectiveness get the job done and now features offering enterprise worth. Get to know the business enterprise, field observers recommend. “It can be

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