Imagine if an individual had invested $100 in Shopify (NYSE:SHOP) stock exactly five years ago. Fast forward to September 19, 2023, and that initial investment would now be valued at an impressive $359.68. This calculation is based on the current price of Shopify shares, which stands at $58.09.
What truly sets Shopify apart is its consistent ability to outperform the market. Over the course of the past five years, Shopify has surpassed the market by an impressive 20.42% on an annualized basis. This remarkable achievement has resulted in an average annual return of 29.07%.
As of September 13, 2023, Shopify boasts a market capitalization of a staggering $74.52 billion. This figure further emphasizes the company’s remarkable success and solidifies its position as a leading player in the market.
The main takeaway from this information is the significance of compounded returns when it comes to growing your wealth over time. Investing in companies like Shopify can yield substantial gains, as demonstrated by the impressive growth of an initial $100 investment.
Updated on: 25/09/2023
Debt to equity ratio: Neutral
Price to earnings ratio: Strong Sell
Price to book ratio: Strong Buy
DCF: Strong Buy
5:00 AM (UTC)
Date:25 September, 2023
|Analyst / firm||Rating|
SHOP Stock Performance on September 19, 2023: Mixed Results and Future Outlook
SHOP stock had a mixed performance on September 19, 2023, as it opened at $59.13, slightly lower than the previous day’s closing price of $59.50. Throughout the day, the stock traded in a range of $56.89 to $59.24. The trading volume was relatively high, with 13,471,205 shares traded, surpassing the three-month average volume of 12,362,410 shares.
Shopify, the company behind SHOP stock, has a market capitalization of $80.1 billion. The company has experienced significant fluctuations in its earnings growth. In the last year, earnings growth was negative at -216.88%. However, this year, earnings growth has skyrocketed to +774.09%. Looking ahead, analysts forecast a positive earnings growth of +218.20% for the next five years.
The revenue growth for Shopify has been strong, with a growth rate of +21.42% in the last year. The price-to-sales ratio for SHOP stock is 7.85, which suggests that investors are willing to pay a premium for each dollar of sales generated by the company. Additionally, the price-to-book ratio is 9.67, indicating that the stock is trading at a higher valuation relative to its book value.
In comparison to other technology services and packaged software companies, SHOP stock outperformed MercadoLibre Inc (MELI), JD.com (JD), PDD Holdings Inc (PDD), and eBay (EBAY) on September 19. While SHOP stock experienced a decrease of -2.99%, the other companies mentioned saw larger declines in their stock prices.
Looking forward, Shopify’s next reporting date is scheduled for October 26, 2023. Analysts are forecasting earnings per share of $0.09 for the current quarter. In the previous year, the company reported annual revenue of $5.6 billion but incurred a net loss of -$3.5 billion. The net profit margin for Shopify stands at -61.79%, indicating that the company is currently operating at a loss.
Shopify operates in the technology services sector and is involved in the packaged software industry. The company’s corporate headquarters are located in Ottawa, Ontario.
Overall, SHOP stock had a mixed performance on September 19, 2023. While the stock opened slightly lower and experienced a decrease throughout the day, it outperformed some of its competitors in the technology services and packaged software industries. Investors will be eagerly awaiting Shopify’s next earnings report to assess the company’s financial performance and future prospects.
Shopify Inc Stock Analysis: Potential 13.19% Increase Predicted by Analysts for September 19, 2023
On September 19, 2023, Shopify Inc’s stock performance was analyzed by 37 analysts who offered their 12-month price forecasts for the company. The median target price was $66.00, with a high estimate of $80.00 and a low estimate of $52.00. This indicates a potential increase of 13.19% from the last recorded price of $58.31.
According to CNN Money, the current consensus among 46 polled investment analysts is to hold stock in Shopify Inc. This rating has remained steady since September, when it was unchanged from a hold rating.
In terms of financial performance, Shopify Inc reported earnings per share of $0.09 for the current quarter. The company’s sales for the same period were $1.6 billion.
Investors interested in Shopify Inc should keep an eye on the company’s upcoming reporting date, which is scheduled for October 26. This report will provide further insights into the company’s financial performance and may impact its stock price.
Overall, based on the information provided, Shopify Inc’s stock performance on September 19, 2023, appears to be positive with analysts predicting a potential increase in the stock price. However, it is important for investors to conduct their own research and consider their investment objectives before making any decisions.