Shopify: Can The Stock Move Higher?

1:25 pm ET, 26 Mar 2018

There has been a 700% rise in Shopify’s stock (NYSE: SHOP) price since 2015.   But what is the stock price prediction?

Shopify's "Facebook problem"--its dependence on getting the data from the social networking site--had caused a dip in its stock price recently.

The Ottawa-based company enables smaller merchants to compete with huge retailers such as Amazon.com by providing them with tools and websites to run their operations.

Google inked a deal with Shopify to assist it in hosting its online e-commerce stores. The hosting will be done on Google's Infrastructure-as-a-Service.   This is a shrewd strategic move by the search engine giant in its attempt to compete with Amazon. 

A few other major retailers besides Shopify have switched from the rival’s Amazon Web Services to Google Public Cloud or Microsoft Azure.

Shopify's focus on the SMB segment, which is prone to headwinds in the retail sector makes it risky to buy the stock now.

Per Finstead Research , Shopify’s average price target is almost $145 which is comparable to its current price (visit Finstead.com and type "Shopify price target").  


Shopify’s valuation is the highest among its peers.

Our simple thought on Shopify is, hold for now.  It may be too risky to jump in at this point.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Shopify Inc. (SHOP) Stock Guide

Updated at: 5:35 pm ET, 12 Aug 2020

Before we start: if you're looking for SHOP stock price, you can quickly find it out by visiting Finny and typing "SHOP quote". If you're looking for a quick scoop on SHOP stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "SHOP". You'll get all this info in one place. Or you can just type "SHOP news" to get the latest stock news.

Looking to buy or sell Shopify Inc. (SHOP)? Interested in getting the full scoop on SHOP, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this SHOP stock guide, we'll address key questions about SHOP, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are SHOP earnings?
2. When is SHOP earnings date?
3. What is SHOP stock forecast (i.e., prediction)?
4. SHOP buy or sell? What is SHOP Finny Score?
5. What are the reasons to buy SHOP? Why should I buy SHOP stock?
6. What are the reasons to sell SHOP? Why should I sell SHOP stock?
7. What are SHOP key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are SHOP earnings?

SHOP trailing 12-month earnings per share (EPS) is -$0.58.

2. When is SHOP earnings date?

SHOP earnings date is October 27, 2020.

Analyst Predictions

3. What is SHOP stock forecast (i.e., prediction)?

Based on SHOP analyst price targets, SHOP stock forecast is $1,090.79 (for a year from now). That means the average analyst price target for SHOP stock is $1,090.79. The prediction is based on 29 analyst estimates.

The low price target for SHOP is $600.00, while the high price target is $1,400.00.

SHOP analyst rating is Buy.

Analysis

4. SHOP buy or sell? What is SHOP Finny Score?

#{finnyScore:50}Our quantitative analysis shows 5 reasons to buy and 5 reasons to sell SHOP, resulting in Finny Score of 50.

5. What are the reasons to buy SHOP? Why should I buy SHOP stock?

Here are the reasons to buy SHOP stock:

  • SHOP quarterly revenue growth was 97.30%, higher than the industry and sector average revenue growth (1.11% and 0.89%, respectively). See SHOP revenue growth chart.
  • SHOP profitability is improving. The YoY profit margin change was 3.14 percentage points. See SHOP profitability chart.
  • SHOP average analyst rating is Buy. See SHOP analyst rating chart.
  • SHOP average analyst price target ($1090.79) is above its current price ($991.00). See SHOP price target chart.
  • SHOP cash to debt ratio is 26.13, higher than the average industry (0.16) and sector (0.17) cash to debt ratio. See SHOP cash to debt chart.

6. What are the reasons to sell SHOP? Why should I sell SHOP stock?

Let's look at the reasons to sell SHOP stock (i.e., the bear case):

  • SHOP stock price ($991.00) is close to the 52-week high ($1094.65). Perhaps now is a good time to sell? See SHOP price chart.
  • SHOP forward P/E ratio is 435.61, which is high compared to its industry peers’ P/E ratios. See SHOP forward P/E ratio chart.
  • SHOP Price/Sales ratio is 57.53, which is high compared to its industry peers’ P/S ratios. See SHOP forward Price/Sales ratio chart.
  • SHOP PEG ratio (P/E adjusted for growth) is 3.64, which is high compared to its industry peers’ PEG ratios. See SHOP PEG chart.
  • SHOP Enterprise Value/Revenue multiple is 54.28, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See SHOP Enterprise Value/Revenue chart.

Key Stats

7. What are SHOP key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for SHOP:

Metrics SHOP
Price $987.60
Average Price Target / Upside $1,090.79 / 10.45%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Software - Application
Sector Technology
Number of Employees 4,000
Market Cap $118.53B
Forward P/E Ratio 429.52
Price/Book Ratio 56.99
Revenue (TTM) $2.08B
YoY Quarterly Revenue Growth 97.30%
Profit Margin -3.24%

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

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