Investment Rating - Buy (First Coverage) [1] Core Views - The report addresses key questions about the global e-commerce SaaS market, Shopify's core business framework, and its strategic expansion through various channels [6] - Shopify's subscription solutions provide foundational e-commerce SaaS services, while merchant solutions offer value-added services like payments, logistics, and financing, driving a second growth curve [7] - Shopify is expanding its business boundaries through strategies like multi-channel independent stores, local globalization, B2C/B2B integration, online-to-offline sales, and AI-driven tools [8] - The company is leveraging generative AI to enhance merchant efficiency, with tools like Shopify Magic and Sidekick [8] Market Analysis - Global e-commerce penetration is steadily increasing, with a projected growth rate of around 9% from 2024 to 2027 [6] - The DTC (Direct-to-Consumer) model is driving demand for e-commerce SaaS services, with Shopify benefiting from lower sales costs and better consumer data control [6] - The global e-commerce SaaS market is expected to reach $473-609 billion by 2025, with a CAGR of 34% from 2024 to 2026 [6] Business Analysis Subscription Solutions - Shopify offers basic e-commerce SaaS services, including online store setup, design, marketing, and inventory management [7] - Subscription solutions provide a stable and sustainable revenue stream, with different pricing plans catering to various business sizes [7] - Shopify Plus, targeting enterprise clients, offers advanced features and contributes significantly to GMV [7] Merchant Solutions - Shopify Payments, a key component of merchant solutions, has seen increasing adoption rates, contributing significantly to revenue [7] - The company has expanded its logistics services through partnerships and acquisitions, though it recently divested its logistics business to focus on profitability [74] - Shopify Capital provides financing solutions to small merchants, helping them manage cash flow and grow their businesses [77] - The platform's app ecosystem, supported by third-party developers, enriches its service offerings and drives merchant growth [80] AI and Global Expansion - Shopify is integrating AI tools like Shopify Magic and Sidekick to enhance merchant efficiency and customer experience [8] - The company is expanding globally through Shopify Markets, offering localized solutions for international sales, including currency conversion, local payment options, and shipping logistics [88] Financial Projections - Revenue for FY2024-2026 is projected to be $8.5 billion, $10.2 billion, and $12 billion, respectively, with adjusted net profits of $1.3 billion, $1.6 billion, and $2.1 billion [9] - The target price is set at $79, based on a 12x P/S multiple for FY2024, reflecting Shopify's strong position as a leader in the e-commerce SaaS industry [9]

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Shopify (SHOP) , which belongs to the Zacks Internet - Services industry.This cloud-based commerce company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 17.34%.For the last reported quarter, Shopify came out with earnings of $0.2 ...

In a bid to bolster its online sales and further compete with fellow omnichannel giant Walmart (WMT)  and Amazon (AMZN) , Target (TGT)  announced a partnership with Shopify (SHOP)  on Monday to enhance its e-commerce marketplace.The collaboration will allow merchants using Shopify’s popular global commerce platform to sell their products on Target Plus, an invite-only third-party marketplace. That said, let’s see if now is a good time to buy Shopify or Target’s stock amid their intriguing partnership.Much-N ...

Buying stocks on a pullback, rather than chasing at new highs, is what's coined as a “Buy-the-dip” strategy. Usually, this strategy pays off long term, but in some cases, the payoff can be immediate when the market senses a bargain too good to last. This has been the case for popular e-commerce platform operator Shopify Inc. NYSE: SHOP after its stock plummeted by nearly 30% following its Q1 2024 earnings report. Once Shopify shares bottomed at $56.31, the stock managed to rise for 12 straight days, indicat ...

JHVEPhoto The stock price of Shopify Inc. (NYSE:SHOP) (TSX:SHOP:CA) crashed after the eCommerce company's first quarter earnings as investors panicked over its sales forecast: Shopify's stock price plummeted from $77 to the mid-$50s, but it has since formed a bottom and the stock is showing early signs of a recovery. I think that Shopify is monetizing a very compelling, long-term growth opportunity in the eCommerce market and though the stock is not a steal by any stretch of the imagination, the eCommerce p ...

Stock prices don't tell you everything, and there may be more beneath the surface with these growth stocks.While some stocks have been rightly beaten down by the market at large, the whims of investors who influence stock prices may only paint part of the picture. Often the performance of the underlying business is far more nuanced. Sometimes a stock with a struggling business is doing well from a share price perspective, while a company that is delivering solid financial results is dumped by investors.If y ...

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Loading...Loading...Shares of e-commerce company Shopify Inc SHOP are trading higher after Evercore ISI analyst Mark Mahaney upgraded the stock from In-Line to Outperform rating and announced a price target of $75.Mahaney noted that a 30% pullback in the stock from the 52-week high has provided an attractive entry point into owning a best-in-class e-commerce platform business. The analyst said Shopify's very large Total Addressable Market (about $850 billion TAM), very strong competitive position, and upmar ...

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Shopify (SHOP) closed the latest trading day at $64.69, indicating a -1.19% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.23%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 0.34%.Coming into today, shares of the cloud-based commerce company had gained 11.4% in the past month. In that same time, the Computer and Technology sector lost 2.01%, while the S&P 500 gained 3.96%.The upcoming earnings release of Shopify will be of great inte ...