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

Key Points

• Shopify shares fell below their 50-day moving average of $152.77, trading as low as $135.65 before last changing hands at $142.57.
• Quarterly results were mixed: EPS of $0.49 beat estimates and revenue grew about 32% year over year to $3.74 billion, but GMV of $119.1 billion narrowly missed expectations; investors also weighed spending and profitability concerns.
• Analysts’ consensus remained Moderate Buy, with an average price target of $177.92, despite the stock’s recent decline.

Shopify Inc. (NASDAQ:SHOP - Get Free Report) TSE: SHOP crossed below its 50-day moving average during trading on Tuesday. The stock has a 50-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.

More Shopify News

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

Analysts Set New Price Targets

SHOP has been the topic of a number of research reports. Mizuho set a $180.00 price objective on Shopify in a report on Thursday, September 24th. Truist Financial set a $180.00 target price on shares of Shopify and gave the company a "buy" rating in a research note on Wednesday, August 5th. DZ Bank downgraded shares of Shopify from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 7th. Evercore restated an "outperform" rating and set a $175.00 price target (up from $135.00) on shares of Shopify in a research note on Wednesday, August 5th. Finally, Canaccord Genuity Group set a $180.00 price target on shares of Shopify and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Three analysts have rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat, Shopify currently has a consensus rating of "Moderate Buy" and an average price target of $177.92.

Shopify Price Performance

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

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last announced its earnings results on Tuesday, November 3rd. The software maker reported $0.49 earnings per share (EPS) for the quarter, topping 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 company earned $0.34 EPS. The firm's revenue for the quarter was up 31.6% compared to the same quarter last year. Sell-side analysts predict that Shopify Inc. will post 1.46 earnings per share for the current fiscal year.

Institutional Trading of Shopify

Large investors have recently modified their holdings of the company. The Manufacturers Life Insurance Company grew its holdings in Shopify by 8.5% during the 1st 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 during the period. Swiss National Bank raised its position in shares of Shopify by 27.0% during the 1st quarter. Swiss National Bank now owns 4,115,300 shares of the software maker's stock valued at $487,580,000 after acquiring an additional 876,100 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its stake in shares of Shopify by 4.1% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,678,602 shares of the software maker's stock valued at $436,356,000 after purchasing an additional 145,500 shares during the period. Bank of New York Mellon Corp lifted its stake in shares of Shopify by 4.8% in the 1st quarter. Bank of New York Mellon Corp now owns 3,495,964 shares of the software maker's stock valued at $414,691,000 after purchasing an additional 159,873 shares during the period. Finally, Amova Asset Management Americas Inc. boosted its position in shares of Shopify by 5.0% in the 1st quarter. Amova Asset Management Americas Inc. now owns 3,458,265 shares of the software maker's stock worth $410,219,000 after purchasing an additional 165,080 shares during the last quarter. 69.27% of the stock is owned by institutional investors.

Shopify Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.