London, United Kingdom - October 02, 2018: Screenshot of Shopify Inc.'s mobile app Shopify.
After a major correction from its yearly highs, Shopify stock price has once again entered into a strong uptrend. The stock of the e-commerce giant has been in a macro uptrend since its bottom in October 2022. Since then, the price has gained 157% and is eyeing more gains in 2023 and 2024.
In this article, we will deeply analyze Shopify stock in order to make its short and long-term forecasts. For this purpose, we’ll adopt the modern analytical tools and the advanced technical analysis. Another factor affecting the price action of the Shopify shares in the long term will be the macroeconomic situation.
Shopify is a publicly listed Canadian e-commerce giant which is headquartered in Ontario, Canada. The company’s platform for retail point of sale and online stores is serving 1.7 million merchants in 175 countries.
Shopify raised $136 million in its 2015 IPO and since then, its stock has been trading on the New York Stock Exchange under the ticker NYSE: SHOP. Shopify hit its all-time high valuation in 2021 when its stock soared to $176.21. Currently, the stock is trading 65% below that ATH, but the outlook remains positive.
Shopify’s simple-to-use e-commerce platform enables merchants to seamlessly manage, build and manage their online shops without any hassle.
Vertex Inc. and Shopify Inc. have recently partnered to enable enterprise merchants to automate their tax calculation and compliance tasks. This partnership will save merchants the hassle of manually updating complex rates and rules in over 195 countries.
The reason behind the ongoing bullish price action in Shopify stock price is the recently released Q3 earnings report which has beaten the analyst expectations. In addition, the company also gave an upbeat guidance for the rest of year.
According to the details, the company reported adjusted earnings of $0.24 per share compared to the estimated $0.14. The revenue which was expected to remain $1.67 billion in Q3, came at $1.71 billion.
Shopify stock price is currently trading at $61.6 which is 13.5% below its yearly high. Since the release of the Q3 earnings report, the stock has rebounded very strongly. The bullish price action comes after an intense sell-off in the last two months.
On the daily timeframe, Shopify shares have broken above the 200 moving average which shows that the bulls have the momentum. Additionally, a deeper look at the following chart also reveals that the price has been respecting the $51-$78 range since March 2022.
After breaking below the range lows earlier this year, the price has once again reclaimed $51. Consequently, a retest of the $64 would decide the direction of the next move.
As mentioned in the chart above, NYSE: SHOP is looking very bullish since the release of its third quarterly report. Therefore, I expect a retest of the middle of the trading range in the coming days. However, my only concern is the price gap below $57 which was left after post-earnings pump.
Shopify stock price prediction will flip very bullish if it breaks above the range highs which lie around $78. However, due to the recent lower low on the weekly chart, there is a strong likelihood of rejection from the $64-$67.5 level in the coming weeks.
The 200-week moving average is one of the best indicators for the macro uptrend. Currently, this key moving average lies at $80.44 and SHOP stock is trading more than 24% below it. Therefore, when its stock price breaks above the 200-weekly moving average, Shopify share price forecast 2025 will become very bullish.
If the stock gains strength above this key moving average in the next year, a new all-time high will be on the cards by 2025.
Technical analysis of Shopify stock price shows that the 2021 all-time high remains the biggest resistance on the chart. However, if Shopify continues to show remarkable growth till the end of this decade, its stock price could easily surpass its previous all-time high.
Based on its global uptrend, a pitchfork analysis of the SHOP chart gives us a a price target between $214 to $391 for the stock by 2030.
In the modern days, stock market investing has become very easy. While making your Shopify store is very easy, buying Shopify stock is even easier. All you need to do is to find a reliable online broker suitable for your jurisdiction or country of residence.
TD Ameritrade, Interactive Brokers, Fidelity, Exness and ATFX are some of the most reliable names in the industry in this regard. These brokers provide a range of different products to invest in Shopify.
Shopify Inc. has generated astronomical returns for its investors since its 2015 IPO. While the past behavior of a stock doesn’t guarantee any future returns, considering its price history, Shopify appears to be a good stock for a long-term hold.
The outlook for the global e-commerce stocks remains bullish. This is because more and more businesses are establishing their stores online in order to avoid the costs of running physical stores. This trend may increase the adoption of Shopify’s e-commerce tools while putting good buy pressure on its stock.
I will continue to post my updated short and long-term outlook on Shopify stock on my Twitter, where you are welcome to follow me.
This post was last modified on Nov 08, 2023, 15:28 GMT 15:28