E-commerce platform Shopify recently reported its Q4 earnings, which saw its stock plummet 10.3% to $47.90 during afterhours trading. The company missed expectations for GAAP earnings per share, but adjusted EPS was higher than consensus. Despite the miss, Shopify’s customer base and revenues continue to grow, with sales for the quarter exceeding consensus. However, the company’s guidance for Q1 2023 was disappointing, suggesting a decline in platform growth. Additionally, some investors remain skeptical about the company’s pivot toward profitability, particularly the nearly 10% of revenue spent on SBC in 2022. As for Shopify’s stock forecast, it remains uncertain, with analysts recommending a wait-and-see approach before re-entering the market. A break below $48 may mean retesting support from late December at $32.40.
Shopify Inc Stock Analysis:
According to the analysis of 27 analysts, the average target price for Shopify Inc is USD 43.38 for the next 12 months. The average analyst ratings for Shopify Inc is “Buy”, with 13 positive signals and 2 negative signals. The stock price of Shopify Inc was USD 53.39 at the last closing. Over the past week, the stock price has increased by +3.59%, while over the past month it has increased by +14.50%. In comparison, the Shopify stock price has decreased by -28.51% over the last year.
Company Overview
Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company’s platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing. It also sells custom themes and apps, and registration of domain names; and merchant solutions, which include accepting payments, shipping and fulfillment, and securing working capital. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is headquartered in Ottawa, Canada.
