SHOP - Shopify Inc - Class A

Stock Details

Shopify Inc - Class A (SHOP), a prominent company in the technology sector within the services-prepackaged software industry, is based in USA and primarily trades on the NYSE.Currently, the stock is trading at $127.07. Over the past 52 weeks, it has ranged between $48.56 and $129.38. This places the current price at 98.2% of its 52-week high and 161.7% above its 52-week low. Recent trading volume was recorded at 8,467,952. The 14-day Relative Strength Index (RSI) stands at 54.30, suggesting neutral conditions. The stock is currently trading above its 50-day moving average of $96.90 by 31.14%. Similarly, it is above its 200-day moving average of $96.88 by 31.16%. The MACD histogram is -0.29, indicating bearish momentum (MACD Line: 2.70, Signal Line: 2.99). The International Securities Identification Number (ISIN) for this stock is CA82509L1076.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

92.40

Above market average

Forward P/E

81.30

Earnings expected to grow

PEG Ratio

1.12

Reasonably valued

Price to Book

13.34

EV/EBITDA

117.21

EPS (TTM)

$1.23

Price to Sales

15.79

Beta

2.63

More volatile than market

How is SHOP valued relative to its earnings and growth?

Shopify Inc - Class A trades at a P/E ratio of 92.40, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 81.30 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.12 indicates reasonable value when growth is considered.

What is SHOP's risk profile compared to the market?

With a beta of 2.63, Shopify Inc - Class A is significantly more volatile than the market. For every 10% market move, this stock tends to move 26% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 13.34 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

17.20%

Operating Margin

11.80%

Return on Equity

16.20%

Return on Assets

7.08%

Revenue Growth (YoY)

26.80%

Earnings Growth (YoY)

94.80%

How profitable and efficient is SHOP's business model?

Shopify Inc - Class A achieves a profit margin of 17.20%, meaning it retains $17.20 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 11.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 16.20% and ROA at 7.08%, the company generates strong returns on invested capital.

What are SHOP's recent growth trends?

Shopify Inc - Class A's revenue grew by 26.80% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 94.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SERVICES-PREPACKAGED SOFTWARE industry averages for proper context.

Company Size & Market

Shares Outstanding

1.22B

Book Value/Share

$8.52

Asset Type

Common Stock

What is SHOP's market capitalization and position?

Shopify Inc - Class A has a market capitalization of $148.07B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 1.22B shares outstanding, the company's ownership is widely distributed. As a major player in the SERVICES-PREPACKAGED SOFTWARE industry, it competes with other firms in this sector.

How does SHOP's price compare to its book value?

Shopify Inc - Class A's book value per share is $8.52, while the current stock price is $127.07, resulting in a price-to-book (P/B) ratio of 14.91. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$115.18

9.36% downside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

How reliable are analyst predictions for SHOP?

50 analysts cover SHOP with 70% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $115.18 implies -9.4% downside, but targets are often adjusted to follow price moves rather than predict them.

What is the Wall Street consensus on SHOP?

Current analyst recommendations:11 Strong Buy, 24 Buy, 14 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 1, 2025, 03:37 AM

Technical Indicators

RSI (14-day)

54.30

Neutral

50-Day Moving Average

$96.90

31.14% above MA-50

200-Day Moving Average

$96.88

31.16% above MA-200

MACD Line

2.70

MACD Signal

2.99

MACD Histogram

-0.29

Bearish

What does SHOP's RSI value tell investors?

The RSI (Relative Strength Index) for SHOP is currently 54.30, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.

How should traders interpret SHOP's MACD and moving average crossovers?

MACD analysis shows the MACD line at 2.70 below the signal line at 2.99, with histogram at -0.29. This bearish crossover indicates downward pressure. The 50-day MA ($96.90) is above the 200-day MA ($96.88), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Jun 4, 2025, 07:13 AM

Shopify Inc - Class A (SHOP) Stock