Stock Price & Analysis

Based on the recent data and market analysis, here's a concise assessment of SHOP's current position:

Technical Analysis The stock is currently trading at $103.35, showing mixed signals in the near term. RSI at 43.95 indicates a neutral position, slightly leaning towards oversold territory. The MACD at -1.32 suggests some downward momentum, but the stock is maintaining support above the 20-day moving average of $107.00.

Recent Performance & Valuation Shopify has shown strong momentum in 2024, with revenue growing 26% year-over-year and beating estimates for nine consecutive quarters. The company's focus on merchant solutions, which accounts for 72% of total revenue, continues to drive growth.

Analyst Sentiment Recent analyst actions show positive momentum:

• Wedbush upgraded to Buy with $125 target (9.42% upside)
• Loop Capital upgraded to Strong Buy with $140 target (18.27% upside)
• RBC Capital maintains Buy rating with $130 target (12.96% upside)

Growth Catalysts

• Expanding market share from 20% in 2021 to 32% currently
• Strong merchant adoption with 16 enterprise brands joining in Q3 alone
• International expansion, particularly in Europe, contributing to revenue growth
• Integration of AI capabilities expected to boost margins and free cash flow

Sell Signals

• High forward P/E ratio of 76x 2025 earnings
• Technical resistance around the $115 level
• Recent market volatility affecting growth stocks

Conclusion Based on the technical and fundamental analysis, SHOP appears to be in a consolidation phase near important resistance levels. While long-term growth prospects remain strong, the current price point suggests waiting for a pullback below $100 before initiating a new position.

Based on the provided data and market analysis, here's the price prediction for SHOP stock in 2025:

SHOP's stock price is expected to reach $135-140 by end of 2025, representing a ~30% upside from current level of $103.35. This projection is supported by three key factors:

First, Shopify continues showing strong revenue growth with analysts expecting 25% growth to $8.8 billion in 2024 and maintaining a 22% CAGR through 2026. The company has successfully turned profitable again after divesting its logistics division and optimizing costs.

Second, Shopify's market position remains strong with expanding total addressable market (TAM) that has grown 18x since IPO. The company has only penetrated 1% of its $849 billion TAM and 2% of its serviceable addressable market, indicating significant growth runway ahead.

Third, technical analysis shows SHOP is currently testing key support around $100-102 level after recent pullback. The RSI at 43.95 indicates neutral momentum without being oversold, suggesting potential for upward movement.

The main risk to this target would be any broad market downturn or slower-than-expected e-commerce growth. However, Shopify's strong market position and improving profitability provide support for the bullish case.

The S1 support level for SHOP Stock is $100.35 ,The R1 resistant level for SHOP Stock is $108.25.

As of the end of day on 2025-01-24, the price of SHOP Stock was $107.7.

The target price for SHOP Stock according to analyst rating is 116.91, with the highest price target at 140.00 and the lowest at 80.00. Analysts have a Moderate Buy rating on SHOP Stock overall.

The market cap of SHOP is $139.1B.

Based on the provided data and recent market analysis, SHOP appears overvalued at current levels. The stock trades at a forward P/E of 87.91x, significantly higher than the industry average of 24.54x. Technical indicators show RSI at 43.95, suggesting neutral momentum but approaching oversold territory. The stock's current price of $103.35 is testing critical Fibonacci support levels, with S1 at $100.44 and S2 at $96.59.

While Shopify demonstrates strong revenue growth with Q3 showing a 26.1% year-over-year increase, the valuation appears stretched considering the competitive e-commerce landscape and broader market uncertainties. The stock's PEG ratio of 2.06 indicates investors are paying a premium for expected growth.

Recent analyst coverage from Loop Ventures raised their target to $140, citing AI implementation benefits, but the current price-to-sales ratio of 12.76 remains significantly above industry averages, suggesting limited upside potential at these levels.

The stock has already surged 55% in 2024, potentially limiting further near-term upside as much of the positive sentiment appears priced in.

Shopify Inc. (Shopify) is a Canada-based global commerce company. The Company provides essential Internet infrastructure for commerce, offering tools to start, grow, market and manage a retail business of any size. It provides platforms and services that are engineered and delivers a shopping experience for consumers online, in store and everywhere in between. Its software enables merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. The Company's Shopify platform provides merchants with a single view of their business across all of their sales channels and enables them to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing, all from one integrated back office. The Shopify's platform operates across 175 countries.

Based on the comprehensive analysis of available data and market research, here's the price prediction for Shopify (SHOP) stock by 2030:

Shopify's stock price is projected to reach $280-320 by 2030, driven by continued e-commerce market expansion and AI integration. The company's strategic focus on merchant solutions and international growth, coupled with its expanding total addressable market (TAM) of $849 billion, supports this bullish outlook. Recent analyst reports indicate strong revenue growth expectations at a 22% CAGR through 2026.

The projection considers Shopify's successful transformation from pandemic highs, with the company now showing consistent revenue growth above 25% for six consecutive quarters. The company's enhanced profitability metrics and strategic AI implementations position it for sustainable long-term growth.

SHOP has a total of 8300 employees.