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Writer's pictureMomentum Stock Alerts
Apr 24, 20192 min read

Why WIX is about to pull a SHOP like Rally 🚀

BotTrigger Trade Alert: $WIX bought the July 19th, 2019 $130 / $140 vertical call spread @ $4.20 for a 5% allocation.




How the subscription game works for growth companies...Netflix use to charge you $7.99 ...12 years later they now charge $15.99 for their HD plan. Feb 1, 2017 Shopify increased their subscription fee for their Merchant plus customers & sent out an email to all their merchants that said something like this: "Unless you are earning $800,000 per month, the monthly cost of Plus will increase to a minimum $2,000. Beyond that $800,000, you will be charged .25% of your monthly sales, up to $40,000." Venmo use to charge you $0 for transfer fees, then they rolled out a $.25 cent transfer fee years later, & just 8 months later from there they now charge $1.25 for a transfer fee to go immediately to your d-card vs a free 2 to 3-day wait period for an ACH transfer. Just today, I got an email from Wix, the website provider used by BotTrigger that announced in increase in their annual plan. My point is...these companies start by offering you a low starting price, PRIORITIZE GROWTH OVER REVENUE at the beginning and just BUILD THEIR CUSTOMER BASE AND FOCUS ON GROWTH GROWTH GROWTH. Then increase in price roll-outs start once their customers are dependent / hooked (not a bad thing) on their platforms/service/content. Mind you, that when Shopify sent out that email on Feb 1, 2017...the stock went full retard to the upside, increasing in share price 150% over the next 230 days. Netflix behaved very similarly with each price increase. The street loves it.


Take a look @ $SHOP Shopify's performance when it broke out after increasing their fee model:



Comments

Some of the greatest pearls shared by Jesse Livermore:

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“Money is made by sitting, not trading.”

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“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money everyday, as though they were working for regular wages.”

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“Buy right, sit tight.”

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“Nobody can catch all the fluctuations.”

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“There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.”

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“It takes time to make money.”

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“Don’t give me timing, give me time.”

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