Stock Ticker

  • Loading stock data...

Investing in Innovation: The Start-Up Upstarts (SHOP, EDNT, ETSY)

Three stocks that capture the spirit of the inventor, entrepreneur, and innovator. All three offer pullback opportunities. Here are their stories: Shopify Inc (NYSE:SHOP), Edison Nation Inc (NASDAQ:EDNT), and Etsy Inc (NASDAQ:ETSY).

 

Shopify Inc (NYSE:SHOP) recently announced that it has completed its previously announced offering of Class A subordinate voting shares at a price to the public of $317.50 per share.

SHOP generated sales of $362M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 12.9% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($2B against $193.4M).

According to the release, “an aggregate of 2,185,000 Class A subordinate voting shares, which includes the full exercise of the over-allotment option of 285,000 Class A subordinate voting shares, were sold by Shopify for aggregate gross proceeds, before underwriting discounts and offering costs, of US$693,737,500. Shopify expects to use its net proceeds from the Offering to strengthen its balance sheet, providing flexibility to fund its growth strategies. Pending their use, Shopify intends to invest the net proceeds from the Offering in short-term, investment-grade, interest-bearing instruments or hold them as cash.”

Shopify Inc (NYSE:SHOP) frames itself as a company that provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in the United States, the United Kingdom, Canada, Australia, and internationally.

Its platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, ship orders, build customer relationships, leverage analytics and reporting, and access financing.

The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was founded in 2004 and is headquartered in Ottawa, Canada.

SHOP has had a rough past week of trading action, with shares sinking something like -10% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way.

 

Edison Nation Inc (NASDAQ:EDNT) continues to be an extremely interesting name that has been very difficult for stock pickers to classify. But the story is what it is. And it’s working.

According to the company’s most recent financial performance data, sales are now growing at over 36 percent a year-over-year basis, to book nearly $6 million in revenues (compared to $4.39 million in the same period in 2018). The other big jump was on the gross profit side of the equation. In all, gross profit increased 61.8% to $2.04 million in the second quarter of 2019, compared to $1.26 million in the second quarter of 2018.

Gross profit margin was 34.2% in the second quarter of 2019, compared to 28.8%, in the same period in 2018. In other words, the company is bringing in more money and margins are growing.

The company recently announced that management has been invited to present at LD Micro NYC Summit. The investor conference is being held on October 7, 2019 at Lowenstein Sandler’s offices.

The puts another carrot out in front of this tape. And the tape is looking increasingly promising, with shares now consistently trading above the major moving averages for the first time in many months.

EDNT is an inventors’ platform, helping new innovations blossom into marketability, and taking a piece of the action along the way. The products this company has helped bring along represent a long list of market successes, such as Ezy Dose Medi-Spout, “911 Help Now” pendant, Goodie Gusher party product line, Lullaplayer, My Buddy Bernie, and Smarter Specs. The company is also relaunching its Emmy award-winning TV show, “Everyday Edisons”, an inspirational reality TV series produced under license by Edison Nation, chronicling the stories of first-time inventors as they launch their unique products into the marketplace in conjunction with the Edison Nation product development platform.

EDNT is also sitting in a web of valuable partnerships with multiple Fortune 500 companies, including Walmart, Target, Rite-Aid, Disney, Home Depot, and Amazon.

Edison Nation Inc (NASDAQ:EDNT) is a name that has likely been overlooked by investors. But that state of affairs is more vulnerable now than ever given that tangible recent results demonstrate concrete success in the making in a market that has significantly failed to appreciate the story on a thematic basis according to our analysis.

 

 

Etsy Inc (NASDAQ:ETSY) recently announced the winners of the first-ever, global Etsy Design Awards with sellers from the UK, US, Greece and Israel taking the top prizes in the search for the best of Etsy.

“The creative heart of Etsy has always been our community of the most talented craftspeople and curators and with these awards we set out to find and recognize the very best of Etsy,” said Etsy Trend Expert and Etsy Design Awards judge Dayna Isom Johnson. “The Etsies have brought to life not only our global sellers’ commitment to their passion but a new level of breathtaking ingenuity and design well beyond our wildest dreams.”

The Etsy Design Awards winners were selected by an expert panel of internationally recognized tastemakers and entrepreneurs; writer and actor Dan Levy, style expert Joe Zee, author & artist Garance Doré, interior designer Sophie Robinson, décor expert Holly Becker, fashion designer Anavila Misra and Etsy’s own Dayna Isom Johnson. Winners were chosen based on quality, creativity, utility, “wow” factor, personal story and branding of their entry.

Etsy Inc (NASDAQ:ETSY) frames itself as an online marketplace for buyers and sellers to sell goods primarily in the United States, United Kingdom, Canada, Australia, France, and Germany.

The company offers approximately 60 million items in its various retail categories to buyers. It also provides various seller services, including Etsy Payments, a payment processing service; Promoted Listings, an on-site advertising service that allows sellers to pay for prominent placement of their listings in search results; Etsy Shipping Labels, which allows sellers in the United States, Canada, the United Kingdom, and Australia to purchase discounted shipping labels; and Pattern, a service that allows sellers to create custom Websites, as well as offers sellers with enhanced tools and credits that can be used on the platform.

Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.

Even in light of its recent news, ETSY has had a rough past week of trading action, with shares sinking something like -5% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Shares of the stock have powered higher over the past month, rallying roughly 6% in that time on strong overall action.

Etsy Inc (NASDAQ:ETSY) pulled in sales of $181.1M in its last reported quarterly financials, representing top line growth of 36.8%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($633.8M against $166.5M).

Published by Lisa Ray

Lisa has a Bachelor of Arts in journalism from Purdue University and 3 years of experience in the publishing field.

Recent Stories

Sponsored Content

Sign Up To Get Our Latest Stocks Alerts