Shopify Inc. (SHOP) Is A Stock You Should Watch

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As of Wednesday close, Shopify Inc.’s (NYSE:SHOP) stock was up $1.49, moving up 4.22 percent to $36.77. The average number of shares traded per day over the past five days has been 15,173,600 shares. 2 times new highs have been achieved over the past 5 days, with a -$1.74 fall in that time frame. In the last twenty days, the average volume was 27,696,166, while in the previous 50 days, it was 27,838,535.

Since last month, SHOP stock rose 23.27%. Shares of the company fell to $27.83 on 10/24/22, the lowest level in the past month. A 52-week high of $166.13 was reached on 01/03/22 after having rallying from a 52-week low of $23.63. Since the beginning of this year, SHOP’s stock price has dropped by -73.30% or -$100.97, and marked a new high 1 time. However, the stock has declined by -77.87% since its 52-week high.


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Valuation Metrics

The stock’s beta is 1.88. Besides these, the trailing price-to-sales (P/S) ratio of 9.10, the price-to-book (PB) ratio of 5.37.

Financial Health

In the three months ended September 29, Shopify Inc.’s quick ratio stood at 6.60, while its current ratio was 6.60, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.10, and the total debt-to-equity ratio was 0.10. On the profitability front, the trailing twelve-month gross margin is 50.50% percent. In the year ended September 29, operating margins totaled -11.80%. Based on annual data, SHOP earned $2.48 billion in gross profit and brought in $4.61 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 0.40%. Return on equity (ROE) for the past 12 months was -33.50%.

According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. SHOP’s revenue rose 36.48% during the quarter, while net income inched up to $4.61 billion. While analysts expected Shopify Inc. to report -$0.07 quarterly earnings, the actual figure was -$0.02 per share, beating the consensus estimate by 71.40%. During the quarter, the company generated -$317.74 million in EBITDA. The liabilities of Shopify Inc. were 2.51 billion at the end of its most recent quarter ended September 29, and its total debt was $1.3 billion.

Technical Picture

This quick technical analysis looks at Shopify Inc.’s (SHOP) price momentum. With a historical volatility rate of 63.50%, the RSI 9-day stood at 56.36% on 23 November.

With respect to its five-day moving average, the current Shopify Inc. price is down by -4.52% percent or -$1.74. At present, SHOP shares trade +26.53% above its 20-day simple moving average and +8.15% percent above its 100-day simple moving average. However, the stock is currently trading approximately +9.14% above its SMA50 and -58.12% below its SMA200.

Stochastic coefficient K was 47.06% and Stochastic coefficient D was 49.11%, while ATR was 2.29. Given the Stochastic reading of 56.07% for the 14-day period, the RSI (14) reading has been calculated as 57.10%. As of today, the MACD Oscillator reading stands at -1.80, while the 14-day reading stands at -0.14.

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