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 ...

Group 1 - Shopify's recent trading session ended at $116.59, reflecting a -0.73% change from the previous day's closing price, which is a lag compared to the S&P 500's daily loss of 0.47% [1] - Over the past month, Shopify's shares have gained 10.46%, while the Computer and Technology sector has lost 0.19% and the S&P 500 has gained 1.67% [1] Group 2 - Shopify's upcoming earnings report is expected on February 11, 2025, with a predicted EPS of $0.44, indicating a 29.41% growth compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue projects net sales of $2.72 billion, up 27.02% from the year-ago period [2] Group 3 - Recent changes to analyst estimates for Shopify reflect evolving short-term business trends, with positive revisions indicating analyst optimism regarding the company's business and profitability [3] - The Zacks Rank system, which incorporates estimate changes, has shown that 1 ranked stocks yield an average annual return of +25% since 1988 [4][5] Group 4 - Shopify's current Forward P/E ratio is 77.97, significantly higher than the industry average of 23.85, suggesting that Shopify is trading at a premium [6] - The company has a PEG ratio of 1.83, compared to the Internet - Services industry's average PEG ratio of 1.75 [7] Group 5 - The Internet - Services industry, which includes Shopify, holds a Zacks Industry Rank of 76, placing it in the top 31% of all 250+ industries [7][8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Shopify has demonstrated significant growth and resilience in the e-commerce sector, but investors need to carefully consider the stock's valuation before making a purchase decision for 2025 [2][12]. Group 1: Company Performance - Shopify has returned to growth mode after facing challenges post-pandemic, with revenue increasing by 26% in 2023 and maintaining strong performance into 2024 [6]. - In Q3 2024, Shopify's revenue rose 26% to $2.2 billion, and operating income more than doubled from $122 million to $283 million [6]. - The company enabled $70 billion in gross merchandise value (GMV) sales in Q3 2024, translating to an annualized rate of $280 billion [11]. Group 2: Growth Opportunities - Shopify has expanded its focus from online sales to omnichannel sales, allowing merchants to sell globally through various platforms [8]. - The company is investing in global business growth, providing local merchants with tools for international sales, including shipping, payments, and tax management [9]. - Shopify's globalization strategy includes introducing its POS system to international markets, enhancing payment processing for merchants [10]. Group 3: Market Position and Valuation - Despite Shopify's strong performance, its price-to-sales (P/S) ratio is 16 and price-to-earnings (P/E) ratio is 97, indicating that the stock may be overvalued compared to competitors like Amazon [13]. - Shopify's market share in the estimated global retail market size of $31 trillion is less than 1%, suggesting significant growth potential [11]. - The current high valuation may deter conservative investors, as the stock price can be volatile in the short term [15].

Core Insights - Shopify has recently laid off employees in its Support division, with estimates suggesting at least a dozen job losses [1][2][5] - The layoffs are part of ongoing changes within the Support division, which has faced challenges in customer service quality and management turnover [3][4][7] Group 1: Layoff Details - The layoffs occurred during or immediately after a brief meeting with HR, complicating the ability of affected employees to determine the total number of job losses [2] - Shopify has conducted multiple rounds of layoffs since 2022, including a significant reduction of 10% of its workforce in July 2022 and an additional 20% in May 2023 [5] Group 2: Support Division Changes - The Support division has been undergoing a project called "Code Yellow" aimed at improving customer service levels, which had reportedly deteriorated [3] - The company has started using generative AI to enhance efficiency and improve the merchant experience, indicating a shift in operational strategy [3] - Shopify has also been hiring third-party vendors for customer support, which has led to concerns about the overall quality of service [4] Group 3: Management Turnover - The Support division has experienced significant turnover in its management, with notable departures in 2024 [4]