CA - Shopify set for seventh straight sessions of gains

2024-01-12 12:38:26 ET

Shopify ( NYSE: SHOP ) shares were on track for its seventh sessions of gains on Friday, as the stock rose nearly 1% to $81.95 in afternoon trade, its highest since February 2022.

The Canada-based e-commerce giant gained about 10% in the preceding six sessions. The stock has more than doubled in the last one year, compared to the 20% rise of the broader S&P 500 Index. SHOP is up 13% over the past one month.

The stock closed 0.3% high on Thursday at $81.30. Short interest on SHOP stands at 2.28% of the total float.

December has been a favourable month for the company, with 14 sessions in green and six sessions in red.

Looking at Seeking Alpha's Quant Rating, SHOP has a Hold rating with a score of 3.44 out of 5. The company received A for growth and momentum, while the score has been dragged down by a C in the prospect of profitability and a F in valuation.

Turning to the Wall Street community, 13 analysts gave SHOP a Strong Buy, while five are Buy on the stock. 28 analysts have given the stock a Hold recommendation, and two recommended Sell.

Seeking Alpha analysts are cautious and see the stock as a Hold.

Earlier in December, JMP Securities has downgraded SHOP to market perform from market outperform citing its belief that its 2024 adjusted operating income will come in below consensus. Wedbush also downgraded the stock on valuation.

Shopify, which enables entrepreneurs and small businesses to set up an online store front, topped expectation for third-quarter results in November, driven by more merchants joining its platform.

“We expect SHOP to continue delivering an upward trend driven by tailwinds from seasonal holiday demand for 4Q23 and strategic partnerships and expanding enterprise market share for FY24 guidance,” pointed out a recent Seeking Alpha analysis.

More on Shopify

• Shopify: Still Buy, Strategically Positioned For Higher GMV Growth
• The 'New' Shopify Is Here
• Shopify: 3 Reasons To Buy In 2024
• Holiday online shopping in 2023 reached new record - Adobe

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