Shopify's extending Monday's 7.3% surge on the Meta Muse / Shop Pay agentic-checkout deal

Summary

The hosts discuss Shopify's continued rally following news of a Meta/Shop Pay checkout partnership and enthusiasm about AI-assisted purchasing. They highlight unusually large call-option buying, subsequent option gains, and a reported decline in Shopify's forward valuation multiple despite the stock's advance.

• Shopify extended its prior-session rally, trading around $148 and briefly exceeding $150.
• The hosts cited the Meta/Shop Pay checkout partnership and AI-driven commerce as positive catalysts.
• Reported unusual activity involved 43,000 December $145 calls purchased while Shopify traded near $129.
• The calls reportedly rose from an $8.95 purchase price to $19.97, more than doubling.
• The hosts emphasized disciplined exits when trades fail to work.
• Shopify's forward P/E reportedly declined from roughly 100 to about 57 despite the rally.
• The hosts praised Shopify's Ottawa-based business and compared its merchant platform with Amazon's.

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   S H O P They had a nice rally yesterday in Shopify.

2. 0:05

   >> Yep.

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   >> And the Meta Muse Shop Pay Agnostic checkout partnership.

4. 0:12

   Well, that was kind of interesting, but that wasn't all. That wasn't the whole reason that people went after S H O P in a bullish way, Pete. And today it's up another 7 and 1/2% to 148 a share. And by the way, we do have some unusual

5. 0:30

   activity to report as it turns out.

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   >> [laughter] >> Um It's pretty cool because people were buying Look at that. Um just yesterday.

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   It's the 22nd today, folks, of September. Yesterday the 21st in the morning in the first hour of trade, stocks were 129 bucks. They buy 4.3 million share equivalent by buying

8. 0:55

   43,000 December 145 calls. They paid 895. Well, they already traded to 1997 today. So, you doubled your money. If you paid attention, you doubled your money. So, how many times have you guys

9. 1:12

   bought a option, bought a stock, bought a future and not doubled your money?

10. 1:17

    >> Hm.

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    >> It's probably a lot more of those than times when you've doubled your money.

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    But, we do this every single day. Now, some of them double. Others, you pay $8 and we say, "Okay, it ain't working.

13. 1:31

    Let's get out at 850 because we paid 890 or whatever." As long as you're disciplined, you can stay at the tables a long time, right, Pete?

14. 1:39

    >> Absolutely, John. I'll, you know, give or take what, 8% today? Maybe Oh, no, it's a little more than that. Closer to 9 or 10% as I take a little glance over here.

15. 1:48

    You know, it's interesting, too, John, because even while this stock is going higher, um it's interesting to see that actually the P/E, the forward P/E is kind of eased back a little bit. It was, you know, it's cooling up from give or take about 100, and and now looking a little bit closer to 57, something like that. So, it's really

16. 2:08

    um even with this move to the upside, because of what this deal and, you know, meta news and all the things that you just talked about, John, uh pretty impressive yesterday, 138 today, gets right around it's got as high as 150, just a little bit above 150. So, there is something definitely

17. 2:25

    driving this. Obviously, AI is is a big deal, and people talk about this and how it's helps uh complete the purchases and so forth and all the rest of the things, the AI drive that that happens when you're checking out. All of that is is something that Shopify is a great example of a company that they see some of the positives of that, and I think

18. 2:45

    that's what we're seeing right now reflected by what we're seeing with the stock and the stock price yesterday and today. Really, really impressive to see how strong this thing looks right now.

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    And like I say, it's actually a little bit less volatile when it when it comes down to things, and that PE has come in quite a bit.

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    >> Well, and I'll give credit where credit's due, Pete. This is a strong Canadian company.

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    >> Yeah.

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    >> Um you know, uh I might give Canada crap a lot. I think most of it is deserved, but I'll also give them credit. They do have some companies that are really doing a great job. Shopify is right there at the top of that list for me, anyway, Pete. There

23. 3:29

    are natural resource companies, most of those are over in Alberta. This is an Ottawa-based company that really has done just a spectacular job being in somewhat the same space as Amazon. You know, they bring people in, they let people sell through their platform, just

24. 3:46

    like Amazon. Um and they've built a great business over the years. So, um again, tip of the hat to Shopify >> [music] >> and uh those folks that work there.

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    >> [music]

Transcript from the show's YouTube captions; automatic captions may contain errors. Educational content, not investment advice.