| Recent adjustment | The actions of Shopify (SHOP) closed at $78.44 marking a decrease in 0.7%. |
| Comparison with indices | Shopify’s decline exceeds that ofS&P 500 (-0.28%) and Nasdaq (-0.33%). |
| Monthly performance | A loss of 4.17% over the month, while the sector of Technologies won 2.1%. |
| Next announcements | Financial results forecast for the November 12, 2024 with profit forecasts of $0.27 per share. |
| Annual forecast | The Zacks Consensus estimates earnings of $1.12 per share and a turnover of $8.63 billion. |
| Evolution of estimates | Upward revisions signaling optimism with a Zacks Rank of #1 (Strong Buy). |
| Valuation ratios | Shopify displays a Forward P/E of 70.7 and a PEG ratio of 1.8. |
| Industry position | The sector Internet – Services positions itself among the 28% most successful industries. |
In a context where the majority of stock indices are falling, Shopify (SHOP) stands out with a more marked depreciation. This article examines the reasons behind this trend, Shopify’s recent financial data, and the outlook for investors.
The reasons for the fall of Shopify
Table of Contents
Recently, during the last trading session, Shopify stock closed at $78.44, marking a decrease of 0.7%. In comparison, the index S&P 500 experienced a loss of 0.28%, while the Dow Jones fell 0.61% and the tech-heavy Nasdaq plunged 0.33%.
Over the last month, Shopify recorded a loss of 4.17%, which represents an underperformance compared to its computer and technology sector which recorded a gain of 2.1%, as well as the S&P 500 with an increase of 0.41%.
Expected financial results and analysts’ expectations
Shopify’s financial results, expected on November 12, 2024, are the center of investors’ attention. Analysts expect earnings per share of $0.27, which would represent annual growth of 12.5%. The consensus is also optimistic about quarterly revenue, estimated at $2.11 billion, up nearly 23% from the previous year.
For the full fiscal year, estimates project a profit of $1.12 per share and revenues amounting to $8.63 billion. This would mark respective increases of 51.35% and 22.18% compared to the previous year.
Analyst Estimates and Forecasts
Recent changes to analyst estimates for Shopify reflect the rapidly changing business landscape in the near term. Positive estimate revisions are often interpreted as a sign of optimism about the company’s business outlook.
Since last month, Shopify’s consensus earnings per share (EPS) estimate has been adjusted by 0.15% on the rise. Currently, Shopify enjoys a #1 Rank (“Strong Buy”) in the Zacks Rank system, which uses these estimate changes to gauge its future performance.
Assessment and sector comparisons
In terms of valuation, Shopify has a forward-looking price-to-earnings (P/E) ratio of 70.7, which is a premium compared to its industry average of 35.47. Additionally, the PEG ratio, which includes expected earnings growth, is currently 1.8 for Shopify, compared to the Internet – Services industry average of 2.22.
Additionally, the Internet Services industry is well positioned within the Computers & Technology sector, with a Zacks Industry Rank of 70, placing it among the top performers of the more than 250 industries evaluated.
Outlook for investors
Shopify investors should consider current valuation metrics and analyst forecasts. Particular attention should be paid to future developments, particularly in connection with the imminent publication of the company’s financial results, which could significantly influence the SHOP share price.
Comparing Shopify Performance Against Market Indices
| Characteristic | Description |
| Recent Shopify Performance | Fall of 0.7% during the last trading session |
| S&P 500 Index Performance | Decrease in 0.28% |
| Dow Jones performance | Drop in 0.61% |
| Nasdaq performance | Reduction of 0.33% |
| Shopify monthly loss | Decrease in 4.17% |
| Monthly gain in the Technology sector | Increase in 2.1% |
| S&P 500 monthly gain | Evolution of +0.41% |
| Shopify Profit Forecast | Forecast growth of 12.5% earnings per share |
| Quarterly Revenue Forecast | Expected increase of 22.96% |
| Shopify Forecast P/E Ratio | 70.7, compared to the industry average of 35.47 |
- Stock performance:
- Closed at $78.44 after a -0.7% adjustment
- Loss of 4.17% over the past month
- Outpaced by the IT and technology sector with a gain of 2.1%
- Closed at $78.44 after a -0.7% adjustment
- Loss of 4.17% over the past month
- Outpaced by the IT and technology sector with a gain of 2.1%
- Comparison of indices:
- S&P 500: Loss of 0.28%
- Dow: Decrease of 0.61%
- Nasdaq: Depreciation of 0.33%
- S&P 500: Loss of 0.28%
- Dow: Decrease of 0.61%
- Nasdaq: Depreciation of 0.33%
- Financial forecasts:
- Date of results: November 12, 2024
- Earnings per share forecast: $0.27
- Expected quarterly revenue increase of 22.96%
- Date of results: November 12, 2024
- Earnings per share forecast: $0.27
- Expected quarterly revenue increase of 22.96%
- Stock market valuation:
- Forecast P/E ratio: 70.7
- PEG ratio: 1.8
- Ranked #1 Zacks Rank for Buy
- Forecast P/E ratio: 70.7
- PEG ratio: 1.8
- Ranked #1 Zacks Rank for Buy
- Closed at $78.44 after a -0.7% adjustment
- Loss of 4.17% over the past month
- Outpaced by the IT and technology sector with a gain of 2.1%
- S&P 500: Loss of 0.28%
- Dow: Decrease of 0.61%
- Nasdaq: Depreciation of 0.33%
- Date of results: November 12, 2024
- Earnings per share forecast: $0.27
- Expected quarterly revenue increase of 22.96%
- Forecast P/E ratio: 70.7
- PEG ratio: 1.8
- Ranked #1 Zacks Rank for Buy