Shopify (SHOP) Stock Drops Despite Market Gains: Important Facts to Note

Company Performance - Shopify's stock closed at $83.71, reflecting a decrease of -1.09% from the previous trading day's closing, underperforming compared to the S&P 500's daily gain of 1.81% [1] - Over the last month, Shopify's shares have decreased by 6.58%, which is better than the Computer and Technology sector's loss of 7.27% but worse than the S&P 500's loss of 6.14% [1] Earnings Expectations - Analysts expect Shopify to report earnings of$ 0.26 per share in the upcoming earnings report, indicating a year-over-year growth of 30% [2] - The consensus estimate for revenue is $2.33 billion, representing a 25.28% increase from the same quarter last year [2] Fiscal Year Projections - For the entire fiscal year, Zacks Consensus Estimates predict earnings of$ 1.49 per share and revenue of $10.86 billion, reflecting changes of +14.62% and +22.29% respectively from the previous year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for Shopify are important as they reflect short-term business trends, with upward revisions indicating analysts' positive outlook on the company's operations and profit generation [4] Valuation Metrics - Shopify currently has a Forward P/E ratio of 56.98, which is a premium compared to the industry average Forward P/E of 18.09 [6] - The company has a PEG ratio of 2.48, compared to the average PEG ratio of 1.15 for Internet-Services stocks [7] Industry Context - The Internet-Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 135, placing it in the bottom 46% of over 250 industries [8]