Core Insights - Shopify's stock gained 37% in 2024, driven by robust growth and improving profitability amid a growing e-commerce market and moderating inflation [1] Company Overview - Shopify serves as the infrastructure for millions of e-commerce retailers, primarily targeting small and medium-sized businesses while also attracting larger clients through various packages and services [2] Recent Performance - The company experienced a 26% year-over-year revenue increase in the third quarter, exceeding expectations, with operating income more than doubling to $283 million [4] - Shopify has consistently expanded its free-cash-flow margin each quarter this year, with management forecasting similar performance for the fourth quarter [4] Growth Opportunities - Shopify is focusing on international expansion, where it ranks as the fourth-largest e-commerce sales platform, with international gross merchandise volume (GMV) increasing over 30% in the third quarter [5] - Merchants in the Managed Markets program, which provides a complete international setup, sold to an average of 83 countries and saw international sales rise by over 40% [6] - The company is also adopting an omnichannel model, offering comprehensive solutions for both online and offline retailers, with offline GMV growth outpacing the overall company total in the quarter [6] Valuation Perspective - Despite a high valuation, with a forward one-year P/E ratio of 54, the company is expected to continue its growth trajectory, suggesting potential rewards for patient investors [7]

Stock Performance - Shopify shares surged 61.4% in the trailing six months, significantly outperforming the Zacks Computer and Technology sector's 2.9% appreciation and the Zacks Internet – Services industry's 4.1% return [1] Merchant Growth and Tools - Shopify's merchant base is growing robustly due to merchant-friendly tools like Shop Pay, Shopify Payments, Shopify Collective, Shopify Audiences, Shopify Capital, and Shop Cash [2] - The company is attracting a mix of smaller, emerging merchants and well-established large brands, including Reebok, Lions Gate Entertainment, Hanes, Vera Bradley, and Victoria's Secret [3] - Over 150 new features have been added to enhance merchant operations, including Checkout Blocks, Customer Account Extensions, and Shop Campaigns [10][11][13] Valuation and Financials - Shopify's Value Score of F indicates a premium valuation, with a 12-month price/sales ratio of 12.88X compared to the broader sector's 7.12X [6] - The Zacks Consensus Estimate for 2025 earnings is $1.50 per share, reflecting year-over-year growth of 18.89%, while revenue is estimated at $10.67 billion, indicating 21.57% growth [17] Partnerships and Market Expansion - Shopify benefits from partnerships with TikTok, Instagram, Target, PayPal, Alphabet, Manhattan Associates, Oracle, COACH, and Adyen [15] - The company has expanded its Payments product offerings through PayPal and leveraged YouTube creators to tap into a global audience [15] - A commerce integration partnership with Roblox has opened new avenues for merchants to reach a younger, more engaged audience [16] Operational Enhancements - Enhanced point-of-sale (POS) features now support bundle sales, split-screen functionality, and customer data collection via metafields, benefiting major retailers like Orlebar Brown, AKIRA, Billy Reid, Fit2Run, and Laura [12] - Shopify Flow templates enable automation features, allowing merchants to assign sales staff to specific B2B customers, utilized by companies like Dermatologica, Therabody, Life Fitness, and Daily Harvest [14] Growth Prospects - Shopify's focus on improving its client base and expanding its footprint justifies its premium valuation [18] - The company's shares are trading above the 50-day and 200-day moving averages, indicating a bullish trend [18][19] - Shopify currently holds a Zacks Rank 2 (Buy) and a Growth Score of B, signaling a strong investment opportunity [21]

AUSTIN, Texas, Jan. 08, 2025 (GLOBE NEWSWIRE) -- Anatta, a leading system integrator (SI) for digital commerce merchants, has achieved Platinum Partner status with Shopify. This accomplishment marks a significant milestone in the agency's mission to support enterprise brands through technical evolution. The Platinum Partner designation, reserved for Shopify's most influential partners, recognizes Anatta's expertise in delivering bespoke solutions for high-volume merchants on the Shopify platform. Anatta’s n ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Shopify (SHOP) closed at $109.96 in the latest trading session, marking a -0.2% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.04%. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq decreased by 0.05%.The cloud-based commerce company's shares have seen a decrease of 2.1% over the last month, not keeping up with the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of 1.05%.The investment community will be c ...

Shopify (NYSE: SHOP ) stock has rallied over the past six months, to say the least, with the stock up roughly 67% compared to the S&P 500, up 7%. I’m initiating Shopify with a buy for the mid-to-long-term investor because it is successfully buildingI’m a retired Wall Street PM specializing in TMT; my educational background is a bachelor's in Finance and Economics, and an MBA from Columbia, after which I directly began my career on Wall Street. Since kickstarting my career, I’ve spent over two decades in the ...

Shopify (SHOP) closed the latest trading day at $108.95, indicating a +1.76% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 1.09%. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq gained 1.03%.Prior to today's trading, shares of the cloud-based commerce company had gained 0.55% over the past month. This has lagged the Computer and Technology sector's gain of 1.8% and outpaced the S&P 500's loss of 0.71% in that time.Analysts and i ...

Growth stocks are back in style these days. Several well-known ones are crushing the market while riding the wave of the artificial intelligence revolution (AI). However, plenty of growth-oriented companies outside of AI are worth investing in. Industries such as e-commerce and fintech have terrific prospects, too, and the leaders in these spaces could deliver outsize returns over the long run.Let's consider two growth stocks -- one in each industry -- that look like excellent buys: Shopify (SHOP -8.19%) an ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, it's pretty easy to find cutting-edge growth stocks wit ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about Shopify (SHOP) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Shopify currently has an average b ...