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Today's Research Reports on Trending Tickers: Costco and Shopify

ACCESSWIRE

NEW YORK, NY / ACCESSWIRE / December 17, 2018 / Costco and Shopify were both in the red on Friday. Costco reported solid quarterly results, but traders were more concerned about the direction of the company. Shopify announced a dilutive secondary stock offering last week that had Wall Street on edge.

The Market Edge Initiates Coverage on:

Costco Wholesale Corporation
https://marketedgereport.com/report/COST/

Shopify Inc.
https://marketedgereport.com/report/SHOP/

Costco Wholesale Corporation shares closed down 8.59% on Friday with around 8.8 million shares traded. Despite delivering solid quarterly results, traders were more concerned about operating income being down. Net Income for the first quarter of fiscal 2019 was $767 million or $1.73 per share, a 19.3% per share increase compared to $640 million or $1.45 per share last year in the first quarter. On an adjusted basis, the Company earned $1.61 per share which was higher than the $1.36 earnings per share in the same quarter last year. It however missed the street’s expectation by a penny. Comparable sales for the quarter saw a growth of 7.5% globally and 8.3% in the United States. E-commerce sales for the company grew 26%. Total Revenue for the period came in at $35.1 billion, up from $31.8 billion in the same period last year and also higher than the street’s expectation of $34.8 billion. The traders are probably concerned about the margin pressure on the Company as it tries to keep up with rivals like Amazon's Whole Foods and Walmart's Sam's Club. CFO Richard Galanti said during the quarterly conference call Thursday, "There's been a little bit more retail competitive pressure out there, not only from supermarkets but Sam's as well. We've got good fresh sales numbers, but we — like others — our competitors are working in a little lower margin."

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Access The Market Edge's Costco Wholesale Corporation Research Report:
https://marketedgereport.com/report/COST/

Shopify Inc. shares were down nearly 13% this past Friday on nearly 6.4 million shares traded. Shares of the e-commerce platform company tanked after Wall Street learned the company announced a dilutive secondary stock offering. Shopify announced the pricing of its previously announced public offering of 2,600,000 Class A subordinate voting shares at a price to the public of $154 per share. Shopify shares were trading at $161 at Thursday’s close, implying a discount of 4.4%. The gross proceeds from the Offering, before underwriting discounts and offering costs, are expected to be US$400,400,000. The leading omni-channel commerce platform said it will use the cash to "strengthen its balance sheet, providing flexibility to fund its growth strategies." In the meantime, Shopify will either hold the cash or invest the proceeds in short-term interest-bearing instruments. Shopify currently powers over 600,000 businesses in approximately 175 countries.

Access The Market Edge's Shopify Inc. Research Report:
https://marketedgereport.com/report/SHOP/

Our Actionable Research on Costco Wholesale Corporation (NASDAQ: COST) and Shopify Inc. (NYSE: SHOP) can be downloaded free of charge at The Market Edge.

The Market Edge

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Disclaimer: This article is written by an independent contributor of MarketEdgeReport.com and Nadia Noorani, a CFA® charter holder, has provided necessary guidance in preparing the document templates. MarketEdgeReport.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.marketedgereport.com/disclaimer.

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SOURCE: MarketEdgeReport