Is shop stock really down $100 in share price?
In fact, SHOP stock is down over $100 in share price — for a decline of 28% — since hitting an all-time-high of $409.61 on Aug. 27. So, what the heck is really going on in SHOP stock you ask?
What the Heck is going on with shop stock?
In fact, SHOP stock is down over $100 in share price — for a decline of 28% — since hitting an all-time-high of $409.61 on Aug. 27. So, what the heck is really going on in SHOP stock you ask? You could point to the company’s recently announced $603 million secondary offering as a driver. And I get it.
Can shop stock trade aggressively lower?
But trading, as with life, is rarely so accommodating. And in a less forgiving environment there’s nothing to suggest SHOP stock can’t trade aggressively lower. I’d reckon a challenge of the support zone from around $250-$263 — which holds the lower Bollinger Band, 50% Fibonacci level as well as the 40-week moving average — shouldn’t be dismissed.
Why is Shopify stock down today?
The growth stock is likely down due to a combination of a tough day in the overall market and another price-target cut on Shopify shares from an analyst. Image source: Getty Images.
Why Shopify stock is going down?
Shopify said it plans to acquire fulfillment technology provider Deliverr for about $2.1 billion. Shopify SHOP +4.05% 's first-quarter earnings missed analysts' expectations, sending the stock plummeting on Thursday.
Why is Shopify plunged?
“Because Shopify is still growing its merchant base and developing new products, the company is not being run for profit maximization currently,” Veritas Investment Research Corp., an independent Canadian equity research firm, said in a recent research note.
Will Shopify stock go up tomorrow?
Tomorrow's movement Prediction of Shopify Inc. SHOP as on 24 May 2022 looks Bearish... There has been some negative changes in this stock and it appears that this sentiment can continue tomorrow....Munafa value: 20 as on 24 Tue May 2022.Downside target296.01Upside target386.558 more rows
Can Shopify go down?
Like any website or web based service, Shopify runs on web servers — which are basically fancy computers. And just like any computer, all servers can go down from time to time for any number of reasons.
What is the future of Shopify?
Consensus estimates indicate that Shopify's sales will reach $6.1 billion this year, translating to 31% growth year over year. By 2025, the company's top-line is expected to hit $13.9 billion, representing an average annualized growth of 25% from 2021 revenue.
What is the prediction for Shopify stock?
Stock Price Forecast The 35 analysts offering 12-month price forecasts for Shopify Inc have a median target of 495.00, with a high estimate of 1,250.00 and a low estimate of 375.00. The median estimate represents a +34.31% increase from the last price of 368.55.
Does Shopify pay dividends?
Does Shopify pay dividends? No, we have never declared or paid any dividends and we do not anticipate paying any cash dividends in the foreseeable future. We currently intend to retain future earnings, if any, to finance operations and expand our business.
Will Shopify ever go back up?
Its certainly possible that Shopify will return to its growth path at some point. But the massive expenditures ahead – combined with Amazon's continued dominance in the ecommerce space – means Shopify investors will have to show some patience.
Will Shopify stock ever recover?
Key metrics have stalled coming out of the pandemic. Some will never recover. Shopify (SHOP 5.04%) -- a platform that lets merchants manage their entire e-commerce business from one application -- is one company with a beaten-down stock that seems to have years of growth head of it.
Is Shopify going to split?
Shopify announced plans to vote on a 10-for-1 stock split in June. Recent moves from other major tech companies suggest that splits lead to long-term stock price gains.
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With inflation at a 40-year high and three or four interest rate hikes on the horizon, consumer spending is likely to grow more slowly (or even decline) in the near term. High-quality businesses like Shopify (NYSE: SHOP) and MercadoLibre (NASDAQ: MELI) currently trade a cheaper valuations than they have in years.
NYSE: SHOP
This February hasn't been a great month for the growth stocks in your portfolio. Block (NYSE: SQ) shares have fallen about 65% from a peak they reached last August. Last December, the company changed its name to Block to highlight a big bet on blockchain-based transactions.
Just because a stock is down doesn't mean it's cheap
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The business continues to grow
Like many high-growth stocks, Shopify ( SHOP -4.68% ) has taken a beating over the past three months. Shares are down 42% since late November and are now down almost 25% in the last 12 months. Plenty of smart investors are saying that now is the time to buy the dip on Shopify stock.
Price-to-sales is back to pre-pandemic levels
Before getting into the stock analysis, let's put some context around Shopify's business. In Q3 of 2021, which ended in September, Shopify's revenue hit $1.12 billion, growing 46% year over year. Top-line growth is driven by Shopify's two core segments: subscriptions and merchant solutions.
Forward expectations are still too high
The main reason investors are excited about Shopify is that the stock is now back around its pre-pandemic price-to-sales ratio (P/S) of 26.5. Combine that with how the stock has performed since the beginning of the pandemic, and the impressive growth numbers the business continues to put up, and many see good reasons for excitement.
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Shopify's trailing-12-month revenue is around $4.2 billion and growing 46% year over year. Its market cap is currently $111 billion. If you're optimistic about Shopify's business prospects, you might expect revenue to grow at 30% over the next few years (the percentage growth numbers will come down as the absolute dollar numbers balloon in size).
NYSE: SHOP
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What happened
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So what
Shares of e-commerce platform provider Shopify ( SHOP -0.47% ) took a hit on Tuesday, extending a bearish trend for shares this year. The stock is down 38% year to date.
Now what
KeyBanc analyst Josh Beck lowered his price target for the stock on Tuesday, dropping it from $1,750 to $1,250. This revised price target is still well above where shares are trading today -- around $850 -- so the analyst kept an overweight rating (similar to a buy rating) on the stock.
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Shopify investors might have to wait awhile before they hear from management about how business is going. The company typically reports on its fourth quarter around mid-February. But maybe Amazon 's ( AMZN -1.33% ) upcoming earnings report on Feb.
SHOP Stock Weekly Chart
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The Bottom Line on Shopify Stock
Plain and simple, even the best stocks correct. Even today’s most celebrated household names from Apple (NASDAQ: AAPL ), Microsoft (NASDAQ: MSFT) or Home Depot (NYSE: HD) have had their periods of challenging price action.
Management's commentary sent the e-commerce giant's stock into a tailspin
With SHOP earnings still more than a month out and the weekly stochastics just now moving into oversold territory with no signs of bottoming, buying on weakness too quickly could be a big mistake.
What happened
Daniel W. Vena, CPA, CGMA is a long-term investor searching for intangibles that provide explosive growth opportunities in his investments. He served on active duty with the US Army and has a Bachelor's degree in accounting. Follow @dannyvena
So what
Shares of Shopify ( NYSE:SHOP) got crushed on Wednesday, tumbling as much as 18.4%. As of 10:45 a.m., the stock was still down 18.2%.
Now what
For the fourth quarter, Shopify generated revenue of $1.38 billion, up 41% year over year. This resulted in adjusted net income of $172.8 million, and adjusted earnings per share (EPS) of $1.36.
What happened
While Shopify's results were laudable, Wall Street found the company's broad guidance lacking. Management doesn't expect the accelerated adoption of e-commerce to continue at the brisk pace experienced last year. As a result, year-over-year revenue growth would be lowest in the first quarter and highest in the fourth quarter.
So what
Shares of Shopify ( SHOP -0.47% ) were tumbling in morning trading Wednesday after peer PayPal ( PYPL -1.47% ) reported disappointing earnings yesterday after the market's close. As of 10:40 a.m. EST, Shopify's stock was down 9.5% while PayPal had lost nearly a quarter of its value.
Now what
Fears of runaway inflation and a recession caused by the Federal Reserve raising interest rates to rein in rising prices have weighed on the retail sector after a lackluster Christmas season.
The Business Continues to Grow
- Despite the massive erosion in its value, Shopify stock could remain volatile in the short term due to the expected slowdown in growth. During the Q4 conference call, Shopify cautioned that its top-line growth could stay below the 2021 level as the year’s first half faces tougher comparisons. Further, Shopify expects the top-line growth to be lower...
Price-to-Sales Is Back to pre-pandemic Levels
Forward Expectations Are Still Too High