NatalieLopez

 19 Apr 24

tl;dr

Shopify (NYSE:SHOP) surged in early trading on Friday following Morgan Stanley's upgrade of the e-commerce stock to Overweight from Equal-weight. The firm believes Shopify is well-positioned to sustain a 20% CAGR through FY30, supported by successful moves up market and expanding international trac...

Shopify (NYSE:SHOP) surged in early trading on Friday following Morgan Stanley's upgrade of the e-commerce stock to Overweight from Equal-weight. The firm believes Shopify is well-positioned to sustain a 20% CAGR through FY30, supported by successful moves up market and expanding international traction. The valuation on SHOP was deemed more reasonable on a normalized free cash flow basis. Analyst Keith Weiss noted that despite concerns about the sustainability of Shopify's operating margin expansion post-Q4 results, the firm believes investor expectations have adjusted too severely. He mentioned that commentary indicating modest headcount expansion in FY24 still leaves room for further realization of operating leverage and free cash flow growth in the business. "We update our model to reflect more durable GMV strength and ~160bps/~170bps of better operating margin expansion in FY24/FY25, resulting from stable headcount expansion," highlighted Weiss. Morgan Stanley raised its price target on Shopify to $85. Shopify rose 2.88% in premarket trading to $71.51, within the 52-week range of $45.50 to $91.57. The e-commerce stock is still down close to 11% on a year-to-date basis and trades below its 100-day moving average of $77.11.

More about Shopify Inc
Shopify Inc Summary

Shopify Inc

Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.

Details

Industry: Technology

Sector: Services-Prepackaged Software

Market Cap: 89,472,582,000

Current Price: $695.1

Dividend Yield: None

EPS: 0.1

P/E Ratio: 5.51

Beta: 0.0187

Volume: 7,060,000

Revenue: 7,060,000,000

Net Income: $82.42

Debt to Equity: 4.858

Quick Ratio: 0.236

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Disclaimer

The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.
 14 Nov 24
 14 Nov 24
 14 Nov 24