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How to buy Shopify stock | $1,176.99

Own Shopify stock in just a few minutes.

Fact checked

Shopify Inc (SHOP) is a leading software-application business based in the US. It opened the day at USD$1190.16 after a previous close of USD$1178.86. During the day the price has varied from a low of USD$1147.0001 to a high of USD$1192.53. The latest price was USD$1176.985 (25 minute delay). Shopify is listed on the NYSE and employs 5,000 staff. All prices are listed in US Dollars.

How to buy shares in Shopify

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Shopify. Find the stock by name or ticker symbol: SHOP. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Shopify reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$1,176.99, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Shopify, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Shopify. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Shopify's share price?

Since the stock market crash in March caused by coronavirus, Shopify's share price has had significant positive movement.

Its last close price was USD$1,176.99, which is 55.76% up on its pre-crash value of USD$520.66 and 285.52% up on the lowest point reached during the March crash when the shares fell as low as USD$305.3001.

If you had bought USD$1,000 worth of Shopify shares at the start of February 2020, those shares would have been worth USD$799.58 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$2,506.98.

Shopify share price

Use our graph to track the performance of SHOP stocks over time.

Shopify shares at a glance

Information last updated 2021-01-15.
OpenUSD$1190.16
HighUSD$1192.53
LowUSD$1147.0001
CloseUSD$1176.985
Previous closeUSD$1178.86
Change USD$-1.875
Change % -0.159%
Volume 582,965
Information last updated 2021-01-12.
52-week rangeUSD$305.3001 - USD$1285.1851
50-day moving average USD$1111.7592
200-day moving average USD$1024.9166
Wall St. target priceUSD$1133.94
PE ratio 727.3873
Dividend yield N/A (0%)
Earnings per share (TTM) USD$1.619

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Shopify stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Shopify price performance over time

Historical closes compared with the close of $1176.985 from 2020-10-16

1 week (2021-01-08) -1.00%
1 month (2020-12-15) 9.58%
3 months (2020-10-15) 9.15%
6 months (2020-07-15) 22.67%
1 year (2020-01-15) 162.42%
2 years (2019-01-15) 662.79%
3 years (2018-01-12) 943.43%
5 years (2016-01-15) 5,817.47%

Is Shopify under- or over-valued?

Valuing Shopify stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Shopify's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Shopify's P/E ratio

Shopify's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 727x. In other words, Shopify shares trade at around 727x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Shopify's EBITDA

Shopify's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$59.2 million.

The EBITDA is a measure of a Shopify's overall financial performance and is widely used to measure a its profitability.

Shopify financials

Revenue TTM USD$2.5 billion
Operating margin TTM 0.07%
Gross profit TTM USD$865.6 million
Return on assets TTM 0.02%
Return on equity TTM 4.37%
Profit margin 7.99%
Book value $50.666
Market capitalisation USD$143.8 billion

TTM: trailing 12 months

Shorting Shopify shares

There are currently 1.0 million Shopify shares held short by investors – that's known as Shopify's "short interest". This figure is 32.8% down from 1.5 million last month.

There are a few different ways that this level of interest in shorting Shopify shares can be evaluated.

Shopify's "short interest ratio" (SIR)

Shopify's "short interest ratio" (SIR) is the quantity of Shopify shares currently shorted divided by the average quantity of Shopify shares traded daily (recently around 1.3 million). Shopify's SIR currently stands at 0.81. In other words for every 100,000 Shopify shares traded daily on the market, roughly 810 shares are currently held short.

However Shopify's short interest can also be evaluated against the total number of Shopify shares, or, against the total number of tradable Shopify shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Shopify's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Shopify shares in existence, roughly 10 shares are currently held short) or 0.0169% of the tradable shares (for every 100,000 tradable Shopify shares, roughly 17 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Shopify.

Find out more about how you can short Shopify stock.

Shopify share dividends

We're not expecting Shopify to pay a dividend over the next 12 months.

Shopify share price volatility

Over the last 12 months, Shopify's shares have ranged in value from as little as $305.3001 up to $1285.1851. A popular way to gauge a stock's volatility is its "beta".

SHOP.US volatility(beta: 1.6)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Shopify's is 1.5951. This would suggest that Shopify's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Shopify overview

Shopify Inc., a commerce company, provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in Canada, the United States, the United Kingdom, Australia, and internationally. Its platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was founded in 2004 and is headquartered in Ottawa, Canada.

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