Is Most-Watched Stock Shopify Inc. (SHOP) Worth Betting on Now?

Core Insights - Shopify has been trending as one of the most searched stocks, indicating increased investor interest and potential volatility in its stock performance [1][2] Earnings Estimate Revisions - Shopify is expected to report earnings of $0.26 per share for the current quarter, reflecting a year-over-year increase of +30% [5] - The consensus earnings estimate for the current fiscal year is $1.45, showing a year-over-year change of +11.5% [5] - For the next fiscal year, the consensus estimate is $1.80, indicating a +24.3% change from the previous year [6] - Over the last 30 days, the earnings estimates have seen slight downward revisions of -2% and -1.8% for the current quarter and fiscal year, respectively [5][6] Projected Revenue Growth - The consensus sales estimate for the current quarter is $2.33 billion, representing a year-over-year increase of +25.3% [11] - Revenue estimates for the current and next fiscal years are $10.81 billion and $12.94 billion, indicating changes of +21.8% and +19.6%, respectively [11] Last Reported Results and Surprise History - In the last reported quarter, Shopify generated revenues of $2.81 billion, a year-over-year increase of +31.2% [12] - The EPS for the same period was $0.44, compared to $0.34 a year ago, with a revenue surprise of +3.26% against the Zacks Consensus Estimate [12] - Shopify has surpassed consensus EPS estimates three times over the last four quarters and has exceeded revenue estimates each time [13] Valuation - Shopify is currently rated F on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [17] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [15][16] Bottom Line - The Zacks Rank 3 suggests that Shopify may perform in line with the broader market in the near term, despite the mixed signals from earnings estimates and valuation metrics [18]