Shopify Inc. SHOP will release its fourth-quarter financial results, before the opening bell, on Tuesday, Feb. 11, 2025.Analysts expect the Ottawa, Canada-based company to report quarterly earnings at 43 cents per share, up from 34 cents per share in the year-ago period. Shopify projects quarterly revenue of $2.73 billion, compared to $2.14 billion a year earlier, according to data from Benzinga Pro.On Jan. 7, EMERGE Commerce Ltd announced the sale of its premium web domains, Shop.ca and Shop.us, to Shopify ...

Core Viewpoint - Shopify Inc is set to report its fourth-quarter earnings, with Wall Street expecting earnings per share (EPS) of 43 cents and revenues of $2.73 billion, indicating strong market anticipation [1] Group 1: Stock Performance - Shopify's stock has increased by 36.11% over the past year and 12.81% year-to-date, reflecting positive investor sentiment [1] - The stock is currently trading at $121.34, above its eight-day simple moving average (SMA) of $118.58, suggesting short-term strength [2] - Longer-term indicators show that Shopify's stock is well above its 20-day ($111.55), 50-day ($111.58), and 200-day ($82.34) SMAs, reinforcing a broader bullish sentiment [2] Group 2: Technical Indicators - The Moving Average Convergence Divergence (MACD) indicator stands at 3.35, supporting a bullish outlook and indicating strong momentum [2] - Shopify's Relative Strength Index (RSI) is at 62.87, placing it in neutral territory and suggesting potential for upward movement before reaching overbought conditions [3] Group 3: Analyst Ratings - The consensus analyst rating for Shopify stock is currently a Buy, with a price target of $98.44 [4] - Recent ratings from RBC Capital, Wedbush, and JMP Securities suggest a higher target of $125, indicating a potential upside of 3.43% from the current trading price [4]

Core Insights - Shopify is a significant player in the U.S. e-commerce market, controlling approximately 30% of it, and is often overlooked due to its focus on providing platform services rather than being a direct retailer [1][3][4] - The e-commerce market is projected to grow, with expectations of reaching 41% of global retail sales by 2027, indicating a favorable environment for Shopify's continued organic growth [3] - Shopify has expanded its services from small businesses to large enterprises, increasing its addressable market and attracting notable clients like Reebok and Unilever [4] Financial Performance - Shopify reported a 26% year-over-year revenue increase in Q3 2024, generating $421 million in free cash flow with a margin of 19%, up from $276 million and a 16% margin in 2023 [5][6] - For Q4, management anticipates a revenue growth of 27% to $2.73 billion and earnings per share of $0.43, reflecting strong market expectations [6][10] - The company has consistently beaten EPS estimates in the past three quarters, although stock performance post-earnings has not always reflected this success [7] Market Context - Amazon remains the leading online retailer with a 38% market share, but Shopify's gross merchandise volume (GMV) has approached Amazon's sales in certain quarters, highlighting Shopify's under-the-radar strength [2] - Shopify is vulnerable to external factors such as foreign exchange impacts, similar to Amazon, which could affect its international growth opportunities [8] - The company is currently trading at a premium valuation with a forward price-to-earnings ratio of 61, indicating high market expectations [12]

On the same day that President Donald Trump delayed ending a trade exemption targeting certain Chinese imports, ecommerce company Shopify published a blog post making its stance on U.S. trade policy clear.In the post, Shopify endorsed “open trade,” calling for regulators to give online merchants the “freedom to expand without constraints imposed by geopolitical brinkmanship.” “Without small-business protections, legitimate entrepreneurs suffer under policies intended to curb exploitation,” the post read. “ ...

Shopify Inc. (NYSE: NYSE: SHOP ) , which hails from Canada, is essentially a company that allows businesses of all shapes and sizes to set up and run their own online stores. What this means in practical terms is that ShopifyThe mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing on small- to mid-cap companies, offering the Seeking Alpha in ...

Shopify (SHOP) is scheduled to report its fourth-quarter 2024 results on Feb. 11.See the Zacks Earnings Calendar to stay ahead of market-making news.For the to-be-reported quarter, Shopify expects revenues to grow at a mid-to-high twenties percentage rate on a year-over-year basis.The Zacks Consensus Estimate for revenues is currently pegged at $2.72 billion, suggesting growth of 27.02% from the year-ago quarter’s reported figure.The consensus mark for earnings is pegged at 44 cents per share, unchanged ove ...

Core Viewpoint - Shopify (SHOP) is expected to report quarterly earnings of $0.44 per share, reflecting a 29.4% increase year over year, with revenues projected at $2.72 billion, a 27% year-over-year growth [1]. Group 1: Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 0.8% over the last 30 days, indicating analysts' reassessment of their initial forecasts [2]. - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Group 2: Revenue Projections - The consensus estimate for 'Revenues- Merchant solutions' is $2.07 billion, suggesting a year-over-year increase of 27.9% [4]. - Analysts predict 'Revenues- Subscription solutions' to be $650.17 million, indicating a 23.8% increase from the previous year [5]. Group 3: Key Metrics - 'Gross Merchandise Volume (GMV)' is expected to reach $92.81 billion, up from $75.1 billion year over year [5]. - 'Monthly Recurring Revenue (MRR)' is projected at $181.60 million, compared to $149 million in the same quarter last year [5]. - Analysts estimate 'Shopify Plus contributed' revenue to be $56.88 million, up from $46 million in the same quarter last year [6]. - 'Gross Payments Volume (GPV)' is expected to reach $58.93 billion, compared to $45.1 billion year over year [6]. Group 4: Profit Estimates - The consensus for 'Gross Profit- Merchant solutions' is $788.12 million, compared to $634 million in the same quarter last year [7]. - 'Gross Profit- Subscription solutions' is forecasted to be $528.89 million, up from $428 million year over year [7]. Group 5: Stock Performance - Over the past month, Shopify shares have increased by 13.1%, outperforming the Zacks S&P 500 composite, which saw a 2.1% change [7].

Core Viewpoint - The technology sector, particularly Shopify, is experiencing significant movements with potential for growth despite recent market fluctuations and challenges [1][2][3]. Company Overview - Shopify Inc. is an e-commerce platform that provides a wide range of services including website creation, sales tools, marketing assistance, payment solutions, and inventory management [5][6]. - The company caters primarily to entrepreneurs, small and mid-sized businesses, and larger enterprises, distinguishing itself from Amazon by focusing on seller support rather than consumer delivery speed [5][6]. Financial Performance - Shopify's stock has increased by 360% from its 2022 lows, outperforming the tech sector's 110% and Amazon's 105% growth [3]. - Despite this growth, Shopify's stock is currently trading 27% below its 2021 highs, while the broader tech sector and Amazon are near record levels [3][10]. - The company is projected to grow its sales by 25% in 2024 and 22% in 2025, increasing from $7 billion to $10.71 billion in FY25 [9]. - Adjusted earnings are expected to rise by 70% in FY24 and another 19% in FY25, reaching $1.51 per share compared to $0.74 in 2023 [9]. Market Position and Valuation - Shopify's stock is currently trading at a high valuation of 103X forward 12-month earnings, compared to the tech sector's 26.1X and Amazon's 37.8X [10]. - The company's PEG ratio stands at 2.4, indicating a significant discount to its recent highs and a smaller premium compared to the tech sector's average of 1.7 [11]. Technical Indicators - Shopify's stock is breaking out to new 52-week highs ahead of its Q4 earnings release, with a recent "golden cross" formation indicating potential upward momentum [4][10]. - The stock's 10-for-1 split in mid-2022 has made it more accessible to a broader range of investors [10]. Future Outlook - Strong earnings guidance from Shopify could lead to a breakout, moving closer to its 2021 peaks, supported by a solid balance sheet and critical offerings for its customers [14].

Wall Street expects a year-over-year increase in earnings on higher revenues when Shopify (SHOP) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 11. O ...

With just one subscription to Beyond the Wall Investing , you can save thousands of dollars a year on equity research reports from banks. You'll keep your finger on the pulse and have access to the latest and highest-quality analysis of this type of information.I first wrote about Shopify Inc. (NYSE: SHOP ) in late April 2024 with a "Hold" rating, warning investors to avoid buying the dip at the time, as the firm's slowing top-line growth seemed like a major problem to me back then. AndHe leads the investin ...