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AI Is Smart, but It Isn't Wise

AI Is Smart, but It Isn't Wise

Regarding Peggy Noonan's 'AI Is Here, and a Quiet Havoc Has Begun' (Declarations, Aug. 9): AI is 'smart' enough to solve a problem and recommend a course of action. What it can't do, it seems to me, is move to a higher plane to answer the question: 'Although we know what to do and how to do it, is it wise to proceed?'
To answer requires the complexity, subtlety and sophistication of human judgment. Ms. Noonan is correct, AI will take away jobs, but we will still need flawed humans in charge to keep a watchful eye over the quality of its output.
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This Growth Stock Is Up 100% in the Last Year, but Still Down 15% From All-Time Highs: Should You Buy Today?
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This Growth Stock Is Up 100% in the Last Year, but Still Down 15% From All-Time Highs: Should You Buy Today?

Key Points Shopify is growing quickly as it expands its commerce tools around the globe. It keeps adding new tools for customers, such as cryptocurrency payments and artificial intelligence (AI). Even though the business is great, the stock trades at an expensive valuation. 10 stocks we like better than Shopify › Shopify (NASDAQ: SHOP) is still in the middle of its 2021 hangover, as shares are down 15% from all-time highs set during the COVID-19 pandemic stock market bubble. The stock is up over 100% in the last 12 months, but still has not eclipsed previous highs after going through a brutal drawdown in 2022. At the same time, business performance has been rock-solid if not stellar, as management keeps adding new commerce tools and attracting new businesses to join the platform. With Shopify stock still down from all-time highs, should you buy shares in 2025 for your portfolio? Here's what the numbers say. Steady global expansion As a software and payments provider for online businesses, Shopify has grown to dominate the North American market. Now, it is moving internationally. Last quarter, growth in payments volume for its European division was 42%, outpacing overall growth. The company has built up a best-in-class set of tools for entrepreneurs and businesses of all sizes to sell and process payments online. Last quarter, even Starbucks signed a deal with Shopify, which shows the capabilities of the platform for online shopping. Overall revenue grew 31% year over year in the quarter, with strong growth expected for the rest of the year. Profit margins remain strong, with free cash flow margins of 16% in the quarter. This combination of growth and profitability is impressive and the key reason why Shopify's stock has soared in the last 12 months. As more and more businesses sign up for Shopify's software tools and payment processing, the more growth Shopify will achieve. 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On the whole, Shopify is building a huge ecosystem of products for businesses trying to sell things online. Its breadth of tools is unmatched in the software world, which is why so many commerce companies are signing deals with them. Expect this growth to continue for many years, as long as product innovation remains top tier. Should you buy Shopify stock? Shopify is a fast-growing business, but that does not necessarily make the stock a buy. Total revenue was $10 billion over the last 12 months. Revenue growth is expected to be over 20% for the rest of 2025. At the same time, 20%-plus growth cannot continue forever, no matter what company you are. On a long-enough timeline, a growth rate significantly above global economic growth would mean absorbing the entire global economy, which is not going to happen (no matter how good Shopify's commerce tools are). Revenue growth will be strong for many years, but it will eventually slow for Shopify. 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This Growth Stock Is Up 100% in the Last Year, but Still Down 15% From All-Time Highs: Should You Buy Today? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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