Shopify Inc - Class A (SHOP) Stock

Shopify Inc - Class A Stock Details, Movements and Public Alerts

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 $106.58. Over the past 52 weeks, it has ranged between $48.56 and $129.38. This places the current price at 82.4% of its 52-week high and 119.5% above its 52-week low. Recent trading volume was recorded at 3,137,958. 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 9.99%. Similarly, it is above its 200-day moving average of $96.88 by 10.01%. 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.

52-Week High

$129.38

52-Week Low

$48.56

Volume

3,137,958

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

87.17

Above market average

Forward P/E

76.34

Earnings expected to grow

PEG Ratio

1.12

Reasonably valued

Price to Book

12.59

EV/EBITDA

108.82

EPS (TTM)

$1.23

Price to Sales

14.69

Beta

2.67

More volatile than market

Is SHOP's P/E ratio considered high or low?
Shopify Inc - Class A's current P/E ratio is 87.17, which is above the market average. This typically suggests investors expect higher future growth, or it could mean the stock is relatively expensive compared to its current earnings.
How does SHOP's Forward P/E compare to its current P/E?
Shopify Inc - Class A's current P/E is 87.17 and its Forward P/E is 76.34. The lower Forward P/E suggests analysts expect earnings to grow in the coming year, potentially making the stock more attractively valued based on future earnings.
What does SHOP's PEG ratio tell investors?
Shopify Inc - Class A's PEG ratio is 1.12. A PEG ratio between 1.0 and 2.0 is generally considered to indicate fair value relative to expected growth.
How volatile is SHOP compared to the overall market?
Shopify Inc - Class A's beta value is 2.67. A beta above 1.5 indicates significantly higher volatility than the market. This stock may experience larger price swings in both directions.

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 is SHOP compared to its industry peers?
Shopify Inc - Class A has a profit margin of 17.20%. This is a strong profit margin that's typically above average for most industries. It means the company is keeping $17.20 of profit from every $100 in sales. Profit margins vary by industry, and SERVICES-PREPACKAGED SOFTWARE companies typically need to be evaluated against their specific sector benchmarks.
What do SHOP's ROE and ROA figures tell investors?
Shopify Inc - Class A has a Return on Equity (ROE) of 16.20% and a Return on Assets (ROA) of 7.08%. The ROE is strong, indicating efficient use of shareholders' equity to generate profits. The ROA is healthy, suggesting management is effectively using company assets to generate earnings. The relatively balanced ROE and ROA suggest the company isn't overly reliant on debt to boost returns.
Is SHOP growing faster or slower than in previous periods?
Shopify Inc - Class A's year-over-year quarterly revenue growth is 26.80%. This represents robust revenue growth significantly above market averages. Meanwhile, earnings growth is 94.80% year-over-year. Earnings are growing faster than revenue, suggesting improving profit margins or operational efficiency.
What does SHOP's operating margin tell us about its business model?
Shopify Inc - Class A's operating margin is 11.80%. This represents a healthy operating margin that shows the company is effectively managing its core operational costs relative to revenue. Operating margins vary widely by industry, and in the services-prepackaged software sector, typically higher margins are expected due to scalable products and lower variable costs.

Company Size & Market

Market Cap

$137.79B

Shares Outstanding

1.22B

Book Value/Share

$8.52

Asset Type

Common Stock

What does SHOP's market capitalization tell investors?
Shopify Inc - Class A's market capitalization is $137.79B, which makes it a large-cap company. Large-caps are generally considered more stable investments with established business models and often pay regular dividends. Within the services-prepackaged software industry, this market cap places Shopify Inc - Class A among the largest players in the sector.
What's the significance of SHOP's book value per share?
Shopify Inc - Class A's book value per share is $8.52, while its current market price is $106.58. This gives a price-to-book (P/B) ratio of 12.51. This relatively high P/B ratio indicates investors are willing to pay a significant premium over the accounting value of the company's equity, typically due to strong growth prospects, high returns on equity, or valuable intangible assets not fully reflected on the balance sheet. In the services-prepackaged software industry, P/B ratios are typically higher due to significant intangible assets and intellectual property not fully captured on balance sheets.
How does the number of outstanding shares affect SHOP investors?
Shopify Inc - Class A has 1.22B outstanding shares. The number of outstanding shares directly affects metrics like earnings per share (EPS) and can be influenced by corporate actions such as stock splits, buybacks, or new share issuances. With a market cap of $137.79B, each share represents ownership of approximately $113.11 of the company's total value. When companies reduce their outstanding shares through buyback programs, this can increase EPS and potentially support higher share prices, assuming other factors remain constant. Conversely, when new shares are issued, this can dilute existing shareholders' ownership stakes.

Analyst Ratings

Analyst Target Price

$114.64

7.56% upside potential

Analyst Recommendations

Strong Buy

12

Buy

23

Hold

14

Sell

1

Strong Sell

1

How should I interpret analysts' recommendations for SHOP?
For Shopify Inc - Class A, analysts have provided the following recommendations: 12 Strong Buy, 23 Buy, 14 Hold, 1 Sell, 1 Strong Sell. Analyst recommendations reflect professional opinions about a stock's potential performance, but they should be just one factor in your investment decisions. Each analyst may use different methodologies and timeframes for their assessments. Overall, analysts currently have a positive view on this stock.
What does the analyst target price mean for SHOP?
The consensus analyst target price for Shopify Inc - Class A is $114.64, compared to its current price of $106.58. This represents a potential upside of 7.56%. Analyst target prices typically reflect where professionals expect the stock price to be in 12 months. This consensus target is derived from individual price targets set by various analysts covering the stock, and it may be updated as market conditions change or as new information becomes available. Keep in mind that while target prices provide insight into professional expectations, they are not guarantees, and actual price performance can vary significantly from these targets.
How accurate are analyst forecasts for stocks like SHOP?
Analyst forecasts, while informative, have inherent limitations in their accuracy. Studies have shown that analysts' predictions can be influenced by various biases, including optimism bias (tendency to be overly positive) and herding behavior (following other analysts' opinions). In the services-prepackaged software industry, forecasts may be particularly challenging due to factors like changing market conditions, competitive dynamics, regulatory changes, and macroeconomic shifts.
Historically, analysts have been more accurate when forecasting:
  • Stable, mature companies with predictable earnings
  • Near-term results rather than long-term performance
  • Companies with transparent business models
Consider analyst forecasts as one tool among many in your investment research, and evaluate them alongside other metrics, industry trends, and your own assessment of the company's fundamentals and market position.

Fundamentals last updated: Jun 2, 2025, 09:02 AM

Technical Indicators

RSI (14-day)

54.30

Neutral

50-Day Moving Average

$96.90

9.99% above MA-50

200-Day Moving Average

$96.88

10.01% above MA-200

MACD Line

2.70

MACD Signal

2.99

MACD Histogram

-0.29

Bearish

What does SHOP's RSI value tell investors?
Shopify Inc - Class A's current Relative Strength Index (RSI) is 54.30. This indicates neutral momentum as the RSI is in the middle range. Values around 50 suggest no clear directional bias. The RSI is a momentum oscillator that measures the speed and change of price movements on a scale from 0 to 100. It's used to identify overbought or oversold conditions and potential reversals.
How should I interpret SHOP's moving averages?
Shopify Inc - Class A's current price of $106.58 is above both its 50-day moving average ($96.90) and its 200-day moving average ($96.88). This is typically considered bullish, indicating the stock is in an uptrend across both short and long-term timeframes. Additionally, the 50-day moving average is above the 200-day moving average, forming what traders call a 'golden cross,' which is generally considered a bullish signal. Moving averages smooth out price data to create a single flowing line, making it easier to identify the direction of the trend. The 50-day MA represents medium-term trend, while the 200-day MA reflects the long-term trend.
What is the MACD indicating about SHOP's momentum?
For Shopify Inc - Class A, the MACD Line is 2.70, the Signal Line is 2.99, and the MACD Histogram is -0.29. The negative MACD histogram indicates bearish momentum, with the MACD line below the signal line. This suggests selling pressure is currently stronger than buying pressure. The MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price. The MACD line is calculated by subtracting the 26-period EMA from the 12-period EMA. The signal line is a 9-period EMA of the MACD line, and the histogram represents the difference between the MACD line and the signal line.

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

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