the Shopify-Stocks (NASDAQ:TSP) have fallen very, very low. Meanwhile, at €480, the stock was as low as it was shortly after the Corona crash in April 2020. Is this a return to more normal valuation indices or a big opportunity? Better decide for yourself.
In any case, Shopify’s management is now reacting to current events around Russia and Ukraine. For me, this means above all that those responsible draw the correct conclusions. But there’s more than that. Let’s take a look at possible effects and good decisions in general.
Shopify Stock: Russia-Aus, Ukraine Support
As Shopify management said this week, they are shocked by the war in Ukraine. That is why the decision was made to suspend its own services in Russia and Belarus, at least temporarily. At the same time, they will not charge any fees for their own services in Ukraine. This is one way the tech player can offer at least a small amount of support in the region.
What impact this will have is, of course, a crucial question. Early US analysts of the Fools see rather minor consequences. The business may not be significant to the success story in Russia or Belarus. So it is possibly more of a political signal in this direction. Without a doubt, this is also a step in the right direction at the moment. Other US companies, such as Coca-Cola, which initially wanted to stay in business, have felt the wrath of consumers. And he yielded to public pressure.
However, there could also be more behind Shopify. Free services in Ukraine for an initially indefinite time can give you the opportunity to position yourself here and establish yourself a little more. In a hopefully soon post-war period, this may reveal an opportunity. But: That may also be too much interpretation on my part. Furthermore, we should not assume that the e-commerce service provider has such an intention.
More than one sign!
Therefore, I see the end in Russia and the possible support of Shopify in Ukraine more as a statement. As a statement that one clearly distances himself from the side of the aggressors and shows solidarity with the Ukrainian community. This is what many companies are currently doing to make their own contribution. And maybe it will also create a bit of pressure towards Russia.
Whether there are noticeable effects remains to be seen. At least early analysts don’t seem particularly worried, even if stocks have tumbled early. In essence, however, this growth story is intact even without Russia and Belarus.
The article Shopify Stock: What do the movements in Russia and Ukraine mean? first appeared in The Motley Fool Germany.
Vincent owns shares in Coca-Cola and Shopify. The Motley Fool owns stock and recommends Shopify and recommends the following options: January 2023 $1140 long call on Shopify and January 2023 $1160 short call on Shopify.
Motley Fool Germany 2022