Shopify (NASDAQ:SHOP) Stock Breaks Below Fifty Day Moving Average – Time to Sell?

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP)’s stock price passed below its fifty day moving average during trading on Tuesday. The stock has a fifty day moving average of $152.77 and traded as low as $135.65. Shopify shares last traded at $142.57, with a volume of 24,757,038 shares changing hands.

Shopify News Roundup

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Third-quarter revenue rose 32% to about $3.74 billion, while earnings of $0.49 per share beat estimates. Operating income also climbed 66%, and the company’s fourth-quarter outlook was described as upbeat. Why Shopify Stock Dove Today
• Positive Sentiment: Shopify highlighted continued AI-commerce momentum: traffic from AI sources increased 2.6 times, and Shop Pay gross merchandise volume rose 50%. Management said shopping through AI channels is growing quickly. Shopify Q3 Earnings Call Highlights
• Neutral Sentiment: The company reported $119.1 billion in gross merchandise volume, up 29% year over year. That reflects solid business growth, but fell just short of Wall Street’s roughly $120 billion estimate. Shopify falls after Q3 results
• Negative Sentiment: The slight GMV shortfall, alongside misses on revenue and subscription revenue versus some analyst estimates, appears to have outweighed the earnings beat. Investors also reacted to concerns about profitability and spending, including AI computing costs and infrastructure investment ahead of the holiday season. Shopify Stock Plunges As Q3 Gross Operating Profit, Revenue Miss

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on SHOP shares. Morgan Stanley lowered Shopify from an “overweight” rating to a “buy” rating in a research report on Monday, July 13th. The Goldman Sachs Group increased their price target on shares of Shopify from $170.00 to $194.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Jefferies Financial Group reissued a “buy” rating on shares of Shopify in a research note on Wednesday, October 14th. Piper Sandler reissued an “overweight” rating on shares of Shopify in a research note on Monday, October 5th. Finally, Stifel Nicolaus set a $210.00 price objective on shares of Shopify and gave the company a “buy” rating in a report on Wednesday, October 14th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-six have given a Buy rating and ten have assigned a Hold rating to the company’s stock. According to MarketBeat, Shopify currently has an average rating of “Moderate Buy” and a consensus price target of $177.92.

Shopify Price Performance

The firm has a market cap of $183.44 billion, a price-to-earnings ratio of 96.33, a P/E/G ratio of 3.23 and a beta of 2.65. The company has a current ratio of 5.35, a quick ratio of 5.35 and a debt-to-equity ratio of 0.01. The company has a 50 day moving average of $152.77 and a 200 day moving average of $130.13.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last posted its earnings results on Tuesday, November 3rd. The software maker reported $0.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.33 by $0.16. Shopify had a return on equity of 12.58% and a net margin of 14.53%. The firm had revenue of $3.74 billion during the quarter. During the same period in the previous year, the firm posted $0.34 earnings per share. The firm’s revenue was up 31.6% on a year-over-year basis. Equities research analysts predict that Shopify Inc. will post 1.46 EPS for the current fiscal year.

Hedge Funds Weigh In On Shopify

Several institutional investors have recently modified their holdings of SHOP. Norris Financial Group LLC bought a new position in Shopify in the first quarter valued at approximately $1,586,000. Infusive Asset Management Inc. boosted its holdings in shares of Shopify by 27.4% in the first quarter. Infusive Asset Management Inc. now owns 43,611 shares of the software maker’s stock valued at $5,173,000 after buying an additional 9,374 shares during the period. OMERS ADMINISTRATION Corp increased its position in shares of Shopify by 18.6% during the first quarter. OMERS ADMINISTRATION Corp now owns 58,044 shares of the software maker’s stock worth $6,876,000 after acquiring an additional 9,096 shares in the last quarter. Ninepoint Partners LP bought a new stake in shares of Shopify during the second quarter worth $29,027,000. Finally, The Manufacturers Life Insurance Company increased its position in shares of Shopify by 8.5% during the first quarter. The Manufacturers Life Insurance Company now owns 8,418,903 shares of the software maker’s stock worth $998,137,000 after acquiring an additional 660,198 shares in the last quarter. Institutional investors own 69.27% of the company’s stock.

About Shopify

Shopify Inc is a commerce technology company that provides tools for businesses of various sizes to start, operate and grow online and in physical retail environments. Its platform supports online storefronts, product and inventory management, order processing, marketing, analytics and customer engagement.

The company offers subscription-based plans and merchant solutions, including Shopify Payments, Shopify POS, Shopify Capital and tools for shipping, checkout and fulfillment. Shopify also supports sales through multiple channels, such as merchants’ own websites, mobile devices, social media and third-party marketplaces.

Shopify was founded in 2006 by Tobias Lütke, Daniel Weinand and Scott Lake after the founders developed an online store for snowboarding equipment.