Shopify Stock Forecast 2023: Is SHOP a Buy or a Sell?

Shopify Stock Forecast: SHOP is technically bullish for the next trading day. Shopify’s Stock Prediction for 12 months is $51.6

Shopify Stock Forecast

Shopify Stock Performance, July 14th

  • 1 Month: +8.9%
  • 3 Months: +53.1%
  • 1 Y: +118.9%

Shopify Stock Forecast: Latest News

  • Shopify CEO Harley Finkelstein announced that MrBeast, the biggest YouTuber on the planet, relaunched his merch store using Shopify’s free theme Publisher. This is a major win for Shopify, as it shows that the company’s platform is being used by some of the biggest names in the world. Anyone can use the Publisher theme for free on the Shopify Theme Store.
  • Shopify announced a partnership with Drake Related, a certified collective powered by Shopify.

Shopify Stock Forecast Target Price

Overall Average$51.6
Deutsche Bank$50
National Bank$60
Roth Capital$55

Shopify Stock Technical Analysis, July 14th

Overall, the analysis is neutral with mixed signals from moving averages and technical indicators.

  1. Moving Averages: The moving averages shows a strong sell buy signal in all the timeframes.
  2. Technical Indicators: The technical indicators display a neutral signal with 2 buys, 2 sells, and 7 neutral signals.
  3. RSI(14) is neutral at 67.55, indicating neither overbought nor oversold conditions.
  4. MACD(12,26) shows a buy signal at 1.65, suggesting positive momentum.
  5. ADX(14) presents a neutral signal at 28.64, indicating a neither overbought not oversold condition

Overall technical analysis indicates a Buy signal for Shopify StockHowever, Crowdwisdom360’s own algorithm is predicting a move lower (see below)

Shopify Stock Forecast Today

UTC: Sep 24th, 2023 05:37 PM
Overall OutlookNeutral
1. Market's WisdomNeutral
1a. Market DataPartially Bearish
1b. Technical RecommendationBuy
2. Crowd's WisdomPartially Bullish
2a. Social Media BuzzSteady
2b. Social Media SentimentLower

Also Read: Rivian Stock Forecast 2022

Shopify Stock Forecast: Q4 Results

  • Q4 GMV exceeded $60 billion, up 13% YoY
  • Full-year 2022 GMV reached $197 billion, a 12% YoY increase
  • Total revenue in Q4 2022 increased 26% to $1.7 billion compared to the prior year
  • Merchant Solutions revenue grew 30% to $1.3 billion, and Subscription Solutions revenue rose 14% to $400.3 million
  • Gross profit in Q4 2022 grew 15% to $798.5 million, compared to the prior year
  • Operating loss in Q4 2022 was $188.7 million, compared to income of $14.4 million in Q4 2021

Shopify Stock Forecast: Why is the stock declining?

  • Revenue swelled up in pandemic times – At the onset of the pandemic revenue in Q1 stood around $470 m which rose to $1380 m in the 4th quarter of 2021. However, Shopify’s EPS for the quarter ending September 30, 2022, was $-0.12 making its price-to-earnings ratio value -3.04%. This means that the company is incurring losses. Before the pandemic, in context with Revenue, it grew at a stellar pace – ( $18.8 m standing in Q1 2014 to $505 m in Q4 of 2018), and that Revenue growth rate intensified during the pandemic. However, the Growth rate seems to have reached its Peak. One can get a clear understanding with the table given below. Amplified performance in revenue led to the over-valuation of the stock price during the pandemic, making it reach its all-time high of $1700.
2022 – $  1,336.2 $  1,295.0 $  1,203.0
2021 $  1,380.0 $  1,123.7 $  1,119.4 $     988.6
2020 $     977.4 $     767.4 $     714.3 $     470.0
in millions
  • Massive cash outflow in new merchant business segment – Following the amazing performance in Shopify’s solutions segment; It has extended its services in Shopify Collab, Shopify Capital, and Shopify logistics/network fulfillment. Shopify aims to build itself as a one-stop shop platform for its consumers. Since these new business scopes under the merchandise segment are still at a nascent stage Shopify is gradually increasing its Y-O-Y R&D expenses. Total operating expenses for the year 2021 were $2212.12 and about 38.6% was spent on R&D. Shopify entering the new business aspects may have a great positive impact but it also makes investors concerned about future profits. In 2021, eps had finally improved to $2.29 which has tumbled down back again in the negatives in the current year’s Quarter.

In conclusion, reiterating the above data, the Price to equity ratio is -3.04% and that means the investors are losing money on the company. Also, the debt to equity ratio for the 3rd quarter is .15% so investors should heedfully create their respective trade positions.

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

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