Q: SHOP had a breakdown/glitch in their system yesterday that caused the stock to tank. This is probably the achilles heel of systems like Shopify. Reliability is so important. What impact do you see it having? My take is its news today but will be forgotten tomorrow if remedial action has been taken and they assure clients and the market it's now under control. Is this similar to your take?
5i Research Answer:
Exactly. If it wasn't cyber-Monday this would not even have been that noteworthy. The issue is fixed and SHOP indicated customers could still browse even when the bug was present. About 4,000 customers were initially impacted and everything was back to normal by yesterday evening. We think the stock decline more than reflects the situation and doubt it will be a material impact to the company.