Shopify Stock Buy Hold or Sell Recommendation
| SHOP Stock | CAD 161.84 3.57 2.26% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Shopify is 'Strong Buy'. The recommendation algorithm takes into account all of Shopify's available fundamental, technical, and predictive indicators you will find on this site.
Check out Shopify Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide. In addition, we conduct extensive research on individual companies such as Shopify and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Shopify. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Shopify |
Execute Shopify Buy or Sell Advice
The Shopify recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Shopify. Macroaxis does not own or have any residual interests in Shopify or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Shopify's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Shopify Trading Alerts and Improvement Suggestions
| Shopify appears to be risky and price may revert if volatility continues | |
| About 71.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: Analyst Downgrade Hits Shopify Amid Valuation Concerns - Yahoo Finance |
Shopify Returns Distribution Density
The distribution of Shopify's historical returns is an attempt to chart the uncertainty of Shopify's future price movements. The chart of the probability distribution of Shopify daily returns describes the distribution of returns around its average expected value. We use Shopify price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Shopify returns is essential to provide solid investment advice for Shopify.
| Mean Return | 0.82 | Value At Risk | -2.87 | Potential Upside | 4.64 | Standard Deviation | 3.33 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Shopify historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Shopify Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 239.2M | 2.1B | (200.6M) | (853.7M) | (236M) | (224.2M) | |
| Free Cash Flow | 8.2M | 383.0M | 453.6M | (186.5M) | 905M | 950.3M | |
| Depreciation | 35.7M | 70.1M | 66.3M | 90.5M | 70M | 37.7M | |
| Other Non Cash Items | 19.1M | (69.2M) | (2.8B) | 3.0B | (67M) | (63.7M) | |
| Capital Expenditures | 62.4M | 42.0M | 50.8M | 50.0M | 39M | 35.4M | |
| Net Income | (124.8M) | 319.5M | 2.9B | (3.5B) | 132M | 138.6M | |
| End Period Cash Flow | 649.9M | 2.7B | 2.5B | 1.6B | 1.4B | 899.1M | |
| Investments | (569.5M) | (1.9B) | (2.2B) | (718.6M) | (1.2B) | (1.2B) | |
| Change To Netincome | 141.7M | 127.0M | (2.3B) | 3.3B | 3.8B | 4.0B |
Shopify Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Shopify or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Shopify's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Shopify stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.60 | |
β | Beta against Dow Jones | 1.66 | |
σ | Overall volatility | 3.35 | |
Ir | Information ratio | 0.20 |
Shopify Volatility Alert
Shopify has relatively low volatility with skewness of 3.7 and kurtosis of 22.27. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Shopify's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Shopify's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Shopify Fundamentals Vs Peers
Comparing Shopify's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Shopify's direct or indirect competition across all of the common fundamentals between Shopify and the related equities. This way, we can detect undervalued stocks with similar characteristics as Shopify or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Shopify's fundamental indicators could also be used in its relative valuation, which is a method of valuing Shopify by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Shopify to competition |
| Fundamentals | Shopify | Peer Average |
| Return On Equity | 0.15 | -0.31 |
| Return On Asset | 0.0563 | -0.14 |
| Profit Margin | 0.16 % | (1.27) % |
| Operating Margin | 0.14 % | (5.51) % |
| Current Valuation | 203.85 B | 16.62 B |
| Shares Outstanding | 1.21 B | 571.82 M |
| Shares Owned By Insiders | 0.18 % | 10.09 % |
| Shares Owned By Institutions | 70.58 % | 39.21 % |
| Number Of Shares Shorted | 10.96 M | 4.71 M |
| Price To Earning | 3.13 X | 28.72 X |
| Price To Book | 14.75 X | 9.51 X |
| Price To Sales | 25.46 X | 11.42 X |
| Revenue | 7.06 B | 9.43 B |
| Gross Profit | 2.75 B | 27.38 B |
| EBITDA | (8 M) | 3.9 B |
| Net Income | 132 M | 570.98 M |
| Cash And Equivalents | 1.65 B | 2.7 B |
| Cash Per Share | 5.48 X | 5.01 X |
| Total Debt | 1.15 B | 5.32 B |
| Debt To Equity | 0.14 % | 48.70 % |
| Current Ratio | 11.17 X | 2.16 X |
| Book Value Per Share | 7.05 X | 1.93 K |
| Cash Flow From Operations | 944 M | 971.22 M |
| Short Ratio | 4.94 X | 4.00 X |
| Earnings Per Share | 1.39 X | 3.12 X |
| Price To Earnings To Growth | 1.12 X | 4.89 X |
| Target Price | 107.97 | |
| Number Of Employees | 8.3 K | 18.84 K |
| Beta | 2.37 | -0.15 |
| Market Capitalization | 196.74 B | 19.03 B |
| Total Asset | 11.3 B | 29.47 B |
| Retained Earnings | (390 M) | 9.33 B |
| Working Capital | 5.38 B | 1.48 B |
Shopify Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Shopify . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Shopify Buy or Sell Advice
When is the right time to buy or sell Shopify? Buying financial instruments such as Shopify Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Shopify in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Moderate Funds Thematic Idea Now
Moderate Funds
Funds or Etfs that combine stocks, bonds and money market instruments to get modest capital appreciation over time. The Moderate Funds theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Moderate Funds Theme or any other thematic opportunities.
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Check out Shopify Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.