Q: I know that you really like Shop but it has been extremely weak Today it is down close to 6% On a technical basis it is approaching a support level of around 151 give or take. Break that and we are on our way to 100. My gut says that the market does not like this stock. Perhaps we should pay heed to what the market is telling us and limit our losses while we can. Your analysis please.
5i Research Answer:
It is a heavy market currently, particularly for software and while SHOP has been weak, it has held up much better than other sofware names which we think is noteworthy as well. In the short-term, sideways volatility is likely the deafault but we would be fine adding on weakness with the understanding that patience will be needed here and likely in software names in general.