312.44 +0.61 (0.20%)
After hours: 7:25PM EDT
|Bid||311.40 x 800|
|Ask||312.20 x 900|
|Day's Range||311.05 - 324.48|
|52 Week Range||117.64 - 338.94|
|Beta (3Y Monthly)||1.52|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 30, 2018 - May 4, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||261.83|
In this daily bar chart of SHOP, below, we can see a sideways to slightly lower consolidation pattern from last June to late December. The On-Balance-Volume (OBV) line makes a low in October and a retest in December before its rise to new highs this month. In this weekly bar chart of SHOP, below, we can see that prices were in the $40 area in 2016 - a pretty historic climb.
Shopify Inc (NYSE: SHOP ) held its Unite partners and developers conference June 18-20 in Canada. The company's recently announced fulfillment, international expansion and retail initiatives should complement ...
(Bloomberg) -- Canadian e-commerce giant Shopify Inc. seems to be doing everything right to fend off short sellers even as the stock enjoys a record run this year.The shares reached an all-time high in New York on June 20, after a 137% rally in 2019 that blew past Amazon.com Inc., the S&P 500 and S&P/TSX.It is only natural to do a second take when a rally is this strong. However, it seems the bulls are not too concerned. Short interest for the U.S.-listed shares touched a 52-week low of 1.96% of float on June 20, down from a high of 9.8% in October, according to data analytics firm IHS Markit Ltd. Even four downgrades in the last two months haven’t been enough to drag bears out of hibernation.The latest downgrade came from Roth Capital Partners analyst Darren Aftahi, who cut his rating on the stock to neutral from buy, citing valuation. However, even the downgrade had a bullish tone, as the analyst raised his price target on the Ottawa-based company to $300 from $275. “We remain positive on its underlying business prospects,” Aftahi said. However, at current valuation “all good news is priced in, and shares are priced to perfection,” he said.Meanwhile, Mackie Research Capital analyst Nikhil Thadani wrote in a note that given the year-to-date performance and lower short interest versus its peak, there could be some near-term pressure on the stock. However, this also could provide an “opportunistic entry points” for the investors.The shares fell as much as 4.5% on Monday.To contact the reporter on this story: Aoyon Ashraf in Toronto at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Jennifer Bissell-Linsk, Catherine LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shopify has become the go-to partner for small businesses seeking a foothold in e-commerce. Critics who complain about its high valuation misunderstand its role in the fastest-growing industry on Earth....
Shopify (SHOP) has launched a warehousing services unit through which it will handle product packaging and deliveries for its sellers. The move marks the diversification of its business and also opens up another battlefront with Amazon (AMZN).
In a market dominated by tech stocks, one stock that has consistently shined brighter than the rest is Shopify (NYSE:SHOP). The e-commerce solutions provider has rattled off big-growth quarter after big-growth quarter, the sum of which has convinced investors that this company is in the early innings of transforming the multi-trillion-dollar global e-commerce market. As investors have become convinced of this, SHOP stock has increased by a factor of 10 over the past three years -- from $30 in June 2016 to $300 in June 2019.Source: Shopify via FlickrWith the stock have coming so far in such a short time, the bears have begun to pile on. Indeed, many of my peers at InvestorPlace think SHOP stock is overvalued (see here, here and here).Ostensibly, it is. The forward and trailing valuation metrics on Shopify stock are out-of-this-world big. We are talking a 20-plus forward sales multiple, and a 500-plus forward earnings multiple. Those are big, even for a hyper-growth tech stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut they've been very big for a long time -- and SHOP stock has done nothing but continue to head higher. Why? * 10 Monthly Dividend Stocks to Buy to Pay the Bills Because an ostensible look at forward valuation metrics oversimplifies the situation here. Shopify is a small company, rapidly gaining share in a big market. The only way to value a company like that is to roll up your sleeves, make some projections about the future, and model it out. When you do that, it becomes more and more obvious that SHOP stock may not be overvalued.Instead, it may actually be undervalued. Why Skeptics Think Shopify Stock Is OvervaluedIn simple terms, skeptics think that Shopify stock is overvalued because they look at the valuation metrics, without doing the dirty work of making long-term projections.Indeed, if you just look at the valuation metrics today, you'd easily walk away with the idea that Shopify stock is wildly overvalued. The stock trades at 23 times forward sales. That's huge. The S&P 500 trades at 2 times forward sales. Even in the highly respected FANG group, the average forward sales multiple is around 6. The biggest forward sales multiple belongs to Facebook (NASDAQ:FB) -- and that number is below 8.Meanwhile, SHOP stock also trades at over 500 times forward earnings. The S&P 500 forward-earnings multiple is around 16. The average forward-earnings multiple in the FANG group is around 55. The biggest forward-earnings multiple in the group is from Netflix (NASDAQ:NFLX), and it's just 100.In other words, Shopify stock is richly valued -- on its face, relative to the market, and relative to big-tech peers. Thus, if you just looked at those valuation metrics, you, too, would walk away saying that SHOP stock is overvalued. Why Shopify Stock Isn't OvervaluedThe global e-commerce market measured around $2.8 trillion in sales last year. That represented just 11.9% of total retail sales, up from 8.6% in 2016 and 10.2% in 2017. By 2021, that share is projected to hit 17.5%, and the total e-retail market is expected to measure $4.9 trillion. By 2030, e-retail could easily have a 25% penetration rate, and easily measure well north of $10 trillion.Shopify's gross merchandise value was around $41 billion last year. Thus, in 2018, Shopify controlled just ~1.5% of the global e-commerce market. That's tiny. But, it's also up from 0.8% in 2016, and 1.1% in 2017. If current growth rates persists, Shopify's 2019 market share could creep up on 2%. By 2030, it could easily grow to 5-10%. At the midpoint in a $10 trillion-plus addressable market, this implies GMV potential north of $750 billion.Shopify's take rate of GMV normally hovers around 1.5%, so that equates to merchant revenue well north of $10 billion. Assuming the subscription business grows somewhat in line with the merchant business, sub revenues could easily get to $4-$5 billion by 2030. Thus, Shopify's revenues could easily get to $15 billion-plus by 2030.Gross margins have hovered in the mid-50% range recently, and could get to 60% with scale. The opex rate hovers around 55%, and that will easily fall a ton as scale kicks in. It will probably settle around 30%, implying 30% operating profits and $4.5 billion-plus operating profits. Taking out 20% for taxes, this produces around $3.6 billion in net profits.Based on a big-growth 25 forward multiple, this implies a 2029 valuation target of $90 billion-plus. Discounted back by 10% per year, that equates to a 2019 valuation target of $34 billion-plus. Shopify stock currently has a market cap of around $34 billion. Bottom Line on SHOP Stock * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 Don't just look at the multiples and call SHOP stock overvalued. Instead, look at the opportunity, recognize the trends, and project where this company will be in ten years.When you do that, it becomes obvious that there's fundamentally supported rationale for why SHOP stock has rallied to $300 in a hurry.As of this writing, Luke Lango was long SHOP, FB, and NFLX. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The post Why Shopify Stock at $300 Makes Sense in the Big Picture appeared first on InvestorPlace.
Sometimes I get it wrong. I have been calling Shopify (NASDAQ:SHOP) stock a bubble stock for nearly two years, ever since short-sale researcher Citron sent out a report questioning how real their customers were.Source: Shopify via FlickrBut the louder I've wailed, the faster SHOP stock has risen. Since the start of 2019, shares are up 136% with a market cap of $36.7 billion.I'm not alone. Our Laura Hoy calls Shopify's current valuation a real problem. Our Chris Tyler suggests you wait for the drop. InvestorPlace - Stock Market News, Stock Advice & Trading TipsMaybe everyone's wrong. But there's a reason why, while I might be extremely bearish on a stock, I never sell short. The Place to BeSome credit for Shopify's rise should go to their niche.Shopify is a cloud-based app that lets anyone open a web store. It also re-sells apps that can make such a store attractive. That's a fashionable niche. It's where money wants to be this year. Cloud-based software companies pay one rent check to their hosts, one that can go down, and get monthly income from their subscribers, which can often go up. It's a sweet, sweet business.This week, Shopify held its annual Unite conference, heralding the new capabilities of its platform. It issued a State of Commerce Report, filled with internet buzzwords that make you swoon, like mobile, social and brand loyalty. * 10 Monthly Dividend Stocks to Buy to Pay the Bills The company announced a two-day shipping service, giving merchants Amazon-like fulfillment. A start-up called Avatria, which specializes in increasing conversion rates, now integrates with Shopify. The company also bought Handshake, a wholesale portal, for under $100 million.The purchase drew breathless gasps about Shopify competing directly with Amazon (NASDAQ:AMZN) and Alibaba (NASDAQ:BABA), which was launched as a wholesale portal 20 years ago. A split from privately-held Mailchimp, and the chimp's purchase of a Shopify competitor called Lemonstand, got more tongues wagging. The Squeeze Is OnThe numbers, however, continue to look ugly for those seeking a safe investment in Shopify stock.SHOP did $320 million of business in its last quarter, less than in the December quarter, and has yet to see a profit. Operating cash flow was just $24 million for March and, while the company has about $2 billion in cash and short-term securities in the bank, with under $100 million in debt, you're paying 30 times sales and 367 times operating cash flow if you buy now.Shopify stock is putting bears through a classic short squeeze, with 28% of the stock's volume being short interest as trade opened. A short squeeze can take a stock well beyond its fundamental value, because those who are short have borrowed shares, and must "buy them back or go to prison."Bulls are calling Shopify's Unite announcements a reason to buy SHOP stock, saying the new Shopify Plus can go head-to-head with Amazon, which has stopped buying from small suppliers and told them to build their own stores. The Bottom Line on SHOP StockMuch of what I'm reading about Shopify sounds like hype, but it will squeeze the shorts until they collapse, and there are indications that is starting to happen.Our Luke Lango asked in late May when Shopify might hit $300. It has since blown past that number and keeps rising.But I also know this. Every bubble bursts. Every short squeeze ends. Every company eventually trades at something like its fundamental value, albeit with a discount or premium based on the type of business it's in.When the Shopify bubble pops, there's a long way it can fall before hitting anything like fundamental value. If you're in it, congratulations and good luck to you. I'm going to keep sitting this dance out.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in MSFT. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The post Shopify Stock: My Favorite Mistake Keeps Rising appeared first on InvestorPlace.
The Zacks Analyst Blog Highlights: Adobe, Charter Communications, HCA Healthcare, Micron and Shopify
has investors shopping in droves for the stock after the Ottawa retail-tech provider disclosed a new fulfillment network and other initiatives. Shares of Shopify closed 0.3% higher at $328.01. To attract smaller merchants, analysts said, Shopify aims to keep those costs competitive.
were up as high as $338 on Thursday, but closed higher by just 21 basis points at $328.01. Should Shopify stock eclipse $356, it will become a triple from its December lows. Baird analysts upped their price target to $360, while analysts at Rosenblatt Securities raised their target from $295 to $395, which implies 20% upside from Wednesday close.
(Bloomberg) -- Canada’s Shopify Inc., an e-commerce company that went public four years ago, is now more valuable than Manulife Financial Corp. and Canadian Imperial Bank of Commerce -- two financial institutions that have been around for more than a century.Shopify eclipsed the financial heavyweights in market value on Wednesday after announcing plans to spend $1 billion setting up a network of fulfillment centers in the U.S. and upgrades to its tools merchants use to sell products.Shopify traded at C$438.24 a share at 1 p.m. in Toronto on Thursday, giving it a market value of C$48.8 billion ($36.9 billion) and making the 12th biggest publicly traded company in Canada. Manulife was at C$46.7 billion and CIBC at C$46.4 billion.The Ottawa-based company has surged 132% this year, the top-performer on the S&P/TSX and a bigger advance than any stock on the S&P 500.To contact the reporter on this story: Simran Jagdev in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Jacqueline Thorpe at email@example.com, ;Jillian Ward at firstname.lastname@example.org, David ScanlanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A (SHOP) bull said it’s time to step back from the hot stock a bit—but investors don’t seem to care. Shopify stock (ticker: SHOP) was recently up 1.6% to $332.27. CIBC analyst Todd Coupland on Tuesday night maintained his $350 price target on the shares while downgrading them to Neutral from Outperform.
Shopify news from yesterday continues to have SHOP stock moving on Thursday.Source: Shopify via FlickrShopify (NYSE:SHOP) went crazy with new product announcements on Wednesday. It did this through a series of press releases detailing all of its new products. All of this was good news for SHOP stock and saw it increase by 7% yesterday.Starting off the Shopify news is the reveal of a new fulfillment network. The company is opening several fulfillment centers around the U.S. The goal is to allow businesses to make delivery quick and easy. It is currently holding a beta to test the service out.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnother of the products announcements from Shopify include an upgrade to storefronts. This allows merchants on its platform to create a more custom look for their store. This can help them better stand out in the minds of customers.The next big Shopify news release has to do with a Plus service. This option is for enterprise business customers. The idea here is that this service will assist merchants with multiple storefronts and brands to better manage and grow their businesses.Expanding its platform to more countries was another bit of Shopify news from Wednesday. This includes the company adding 11 new languages, as well as allowing multiple types of currencies through Shopify Payments.Moving on to the next bit of Shopify news includes an update for developers. This has the company focusing more on allowing for quick and easy app creation. This should make it easier for developers to create apps that work well with the platform. * 6 Stocks Ready to Bounce on a Trade Deal Finally, we have an upgrade to the Shopify POS. This is the newest generation of the company's point-of-sale software. The company says this is a " a faster, more intuitive, and more scalable" software for brick-and-mortar businesses.SHOP stock peaked at a 3% increase Thursday morning, but is now only up slightly just before noon. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Blue-Chip Stocks to Buy for a Noisy Market * 5 Strong Buy Biotech Stocks for the Second Half * 6 Stocks Ready to Bounce on a Trade Deal As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post Shopify News: Why SHOP Stock Is Moving appeared first on InvestorPlace.
KeyBanc Capital Markets' Josh Beck maintained an Overweight rating on Shopify with an unchanged $300 price target. Shopify's investment in fulfillment centers in the U.S. is seen as a move to help its smaller merchants compete on a more level playing field against Amazon.com, Inc. (NASDAQ: AMZN), Beck said in a Wednesday note.
Shopify (SHOP) announced a distributed fulfillment network in the United States to expand merchant base. The company also introduced other merchant-friendly initiatives at Shopify Unite conference.
In the absence of any changes to the Federal Reserve funds rate, and the relatively predictable language surrounding the decision, investors were willing to build on Tuesday's progress. On Wednesday, the S&P 500 gained another 0.30%, albeit in modest volume.Source: Allan Ajifo via Wikimedia (Modified)Shopify (NYSE:SHOP) was the day's most noteworthy winner, up 7.6% on the heels of news that it would be establishing a fulfillment and distribution network akin to the one built by indirect rival Amazon (NASDAQ:AMZN). China's electric carmarker Nio (NYSE:NIO) logged an even bigger win though, up roughly 10% between the regular hours and after-hours session, continuing a rebound effort that started to take shape three days ago, somewhat coinciding with the launch of its ES6 crossover vehicle.Mattel (NASDAQ:MAT) was among the notable losers. The toy company's stock fell more than 5% after it officially ended merger negotiations with privately held MGA Entertainment. MGA's CEO Isaac Larian subsequently called Mattel insolvent, saying it can't be salvaged. The market listened.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 'Buy-and-Hold' Stocks to Own Forever As Thursday's action gets going, however, it's the stock charts of WellCare Health Plans (NYSE:WCG), Nordstrom (NYSE:JWN) and CF Industries Holdings (NYSE:CF) that emerge as the most interesting prospects. Here's why, and what to look for. CF Industries Holdings (CF)In late April, CF Industries Holdings was on the verge of a major breakout move. Volume was strong and forward progress was palpable. The ceiling ahead was thick and strong, but could have proven catalytic if CF could punch through.However, the April effort ended up petering out before getting over the technical hurdle. In fact, CF Industries fell all the way back to an established technical floor around $39. But, the breakout effort that took shape during the first half of this month has finally blasted past the ceiling in question. Although it looks like a little profit-taking may be in store, if CF can hold above the ceiling it makes a renewal of the rally effort all the more likely. Click to Enlarge * The resistance level that was finally broken is $45.42, marked with a red dashed line, though the white 200-day moving average line was also an important ceiling that has been put in the rearview mirror. * Wednesday's lull was telling, but as long as the $45.42 level, once a ceiling, becomes a floor, the odds of another bullish leg are strong. * As the weekly chart illustrates, this choppy progress is all part of a much bigger uptrend that extends back to 2016. WellCare Health Plans (WCG)A month ago, WellCare Health Plans was featured as a budding breakout candidate. Although a critical ceiling had yet to even be tested, key moving averages were stepping up as support levels. While more volatility was in store, the bullish case was strengthening.Things have panned out exactly as the charts suggested they would. There's still a good chance of a near-term pullback, and if the bulls don't play their cards right, they could squander the opportunity. Nevertheless, the potential here is too good to ignore. The key is when and where the bulls make their next stand in the face of any headwind. * 6 Cloud Gaming Stocks to Buy for 2020 and Beyond Click to Enlarge * The big victory since the last look is the move above $289.50, marked with a red dashed line, which until this month had been a ceiling. * Also, in the meantime, the purple 50-day moving average line crossed above the white 200-day line … a so-called golden cross that portends more gains. * It's not an ideal golden cross, however. The 200-day moving average line is actually pointed downward, partially suggesting there's some lingering long-term weakness. * The weekly chart shows this is all part of a move within a rising trading channel, framed by blue and yellow lines. This leaves room for WCG to climb to $320, or higher, if it continues to gain traction. * Although compelling as-is, it might be wise to wait and see if WellCare can bounce back from any upcoming dip back below $289.50. Nordstrom (JWN)One good day does not make or break a trend. But, all trend reversals start with one day. Nordstrom may have had such a day yesterday.The 3.2% gain was admittedly easy to make, and barely scratched the surface of a multi-month downtrend that shaved nearly 50% of the stock's price seen in November of last year. There's also a massive amount of repair work that would need to be done to make this the beginning of a long-awaited turnaround. But, some of the clues are starting to pile up, and it's clear where the biggest lines in the sand are. Click to Enlarge * Most noteworthy of Wednesday's bar is the volume surge behind the buying. A lot of bulls suddenly started to pile in for reasons well beyond the market's mostly bullish tide. * The daily chart also indicates the $33.42 level, marked with a white dashed line, is turning into a technical ceiling. That level will need to be hurdled before any progress is made. * The budding uptrend may only be an effort to fill in the gap left behind in March, the upper value of which is $36.65, marked in yellow. But, the effort to do that could actually put a more prolonged buying effort into motion. * Zooming out to the weekly chart, it's clear that the current oversold condition indicated by the RSI line frequently coincided with major bottoms.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Blue-Chip Stocks to Buy for a Noisy Market * 5 Strong Buy Biotech Stocks for the Second Half * 6 Stocks Ready to Bounce on a Trade Deal Compare Brokers The post 3 Big Stock Charts for Thursday: CF Industries, Nordstrom and WellCare Health Plans appeared first on InvestorPlace.
Dow Jones futures: The stock market rally is racing toward record highs after the dovish Fed meeting with the Trump-Xi meeting looming. Oracle stock rose on strong earnings.