Shopify: Can The Stock Move Higher?

Carla Olson | 2:25 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 Finstead Bites, please send us an email at hi@finstead.com.


Shopify Inc. (SHOP) Buy or Sell Stock Guide

Updated at: 6:35 am ET, 25 Nov 2018

The analysis below may be helpful to you if you have any of the following questions about SHOP stock:

  • Is SHOP a buy or a sell?
  • Should I sell or hold SHOP stock today?
  • Is SHOP a good buy / a good investment?
  • What are SHOP analyst opinions, recommendations, ratings?

Here are SHOP stock buy reasons/signals:

1. SHOP quarterly revenue growth was 57.50%, higher than the industry and sector average revenue growth (8.57% and 5.22%, respectively).

2. SHOP profitability is improving. The YoY profit margin change was 0.07pp.

3. SHOP average analyst rating is Buy.

4. SHOP average analyst price target ($161.76) is above its current price ($134.81).

Here are SHOP stock sell reasons/signals:

1. SHOP forward P/E ratio is 203.94, and it’s high compared to its industry peers’ P/E ratios.

2. SHOP Price/Sales ratio is 16.04, and it’s high compared to its industry peers’ P/S ratios.

3. SHOP PEG ratio (P/E adjusted for growth) is 5.62, and it’s high compared to its industry peers’ PEG ratios.

4. SHOP short interest (days to cover the shorts) ratio is 6.82. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on SHOP?

If you liked this analysis, check out Buy or Sell 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 Finstead Bites, please send us an email at hi@finstead.com.


Try Finstead: the fastest way to get market data and insights on stocks, ETFs, mutual funds, and cryptocurrencies