Shopify (NYSE: SHOP ) was among the best performers in 2019, posting an almost-200% gain for the year. There is no doubt that the rally was triggered by positive business developments rather than just irrational exuberance. However, analysts and investors agree that SHOP stock valuations look stretched.
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With that in mind, I believe that Shopify stock is likely to trade sideways to lower in the new year. While I maintain a positive outlook on the business, I am bearish on the stock for the coming quarters.
Many things are taking place:
Shopify Stock Is Priced for Perfection, but Buyer Beware | InvestorPlace
[[Editor’s Note: This article was updated on Dec. 16, 2019, to correct the net income losses for Shopify.]]
Shopify (NYSE: SHOP ) stock trades at such a lofty valuation it seems priced for perfection. Any misstep by management or the company will likely pop the stock’s ballon.
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Some issues we see with Shopify stock are its decelerating revenue growth, continuing losses, and the outlandish valuation even if its growth and losses improve.
Ecommerce Briefs: Unilever's Liquidation Site; Amazon's Shipping Delays; Shopify; Jumia |
"Ecommerce Briefs" is my occasional series on news and developments that impact online merchants. In this installment, I'll report on Unilever's new B2B liquidation site, Amazon's holiday shipping delays, Shopify's holiday shopping statistics, and the troubles of Jumia, the African ecommerce marketplace.
The new Unilever Liquidation Auctions uses the B-Stock platform. Sellers to date include leading consumer brands.
Can Shopify Stock Rally after Touching New Highs? - Market Realist
Shopify ( SHOP ) stock has generated stellar returns of around 194.7% on a YTD (year-to-date) basis as of December 27. In comparison, the S&P 500 and the VanEck Vectors Semiconductor ETF have risen about 29.3% and 62.9% YTD.
On December 27, Shopify stock closed the trading day at $408.00—down 0.18%. The stock is trading 2.1% below its 52-week high of $416.60. Meanwhile, the stock is trading at 215.1% higher than its 52-week low of $129.48. At the closing price on December 27, Shopify's market capitalization was $46 billion.
Quite a lot has been going on:
From Uber to Shopify: Startups that changed everything in the 2010s - Business Insider
As the decade kicked off, smartphones were becoming ubiquitous, connecting billions of people to the internet — many for the first time — and paving the way for a wave of innovative business models.
Online marketplaces and sharing economy platforms — Amazon, Facebook, Uber, Airbnb, and many more — demonstrated the power of network effects, and in doing so, completely changed how people and businesses interact with each other.
Rosenblatt's 2020 Tech Predictions: Facebook Stays Intact, Spotify Partners With Video
The SPDR S TR/S&P INTERNET ETF (NYSE: XWEB ) has gained about 9% year-to-date, underperforming the Nasdaq Composite Index, which has soared about 34% in the same period.
Given the catching up the subsector has to do, Rosenblatt Securities is making predictions for 2020 for the Internet stocks in its coverage universe.
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Mark Zgutowicz has a Buy rating on Facebook, Inc. (NASDAQ: FB ) with a $242 price target, and:
Stocks That Make The World A Better Place: Shopify (SHOP), Abercrombie & Fitch Co.
The recent performance of Shopify (NYSE:SHOP) stock in the market spoke loud and clear to investors as SHOP saw more than 2.40M shares in trading volumes in the last trading session, way higher than the average trading volume of 2.40M shares by far recorded in the movement of Shopify (SHOP). At the time the stock opened at the value of $389.81, making it a high for the given period, the value of the stock jumped by 2.64%.
Given the most recent momentum in the market in the price movement of SHOP stock, some strong opinions on the matter of investing in the company's stock started to take shape, which is how analysts are predicting an estimated price of $363.38 for SHOP within consensus. The estimated price would demand a set of gains in total of 36.37%, which goes higher than the most recent closing price, indicating that the stock is in for bullish trends.
What Investors Need to Know About the Retail Apocalypse | Nasdaq
With the holiday shopping season largely behind us, the bad news will start to flow soon from the usual retail suspects. J.C. Penney (NYSE: JCP) , Sears (OTC: SHLDQ) , and a variety of struggling mall retailers will almost certainly report poor results whenever they release fourth-quarter earnings reports.
It's a confusing situation for investors. The "retail apocalypse" narrative has some grounding in truth, but it's a very simplistic view of what's actually happening.
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