Shopify Inc is a software-application business based in the US. Shopify shares (SHOP.US) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was $1245.1 – a decrease of 13.23% over the previous week. Shopify employs 7,000 staff and has a trailing 12-month revenue of around $3.4 billion.
How to buy shares in Shopify
- Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
- Open your account. You'll need your ID, bank details and national insurance number.
- Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
- Search the platform for stock code: SHOP in this case.
- Research Shopify shares. The platform should provide the latest information available.
- Buy your Shopify shares. It's that simple.
What's in this guide?
- Can I buy shares in Shopify?
- Has coronavirus impacted Shopify shares?
- Shopify shares summary
- Compare share dealing platforms
- Is Shopify stock a buy or sell?
- Shopify performance over time
- Can I short Shopify shares?
- Are Shopify shares over-valued?
- Shopify's financials
- How volatile are Shopify shares?
- Does Shopify pay a dividend?
- Other common questions
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 market close was $1245.1, which is 58.18% up on its pre-crash value of $520.66 and 307.83% up on the lowest point reached during the March crash when the shares fell as low as $305.3001.
If you had bought $1,000 worth of Shopify shares at the start of February 2020, those shares would have been worth $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 $2,652.06.
Shopify share priceUse our graph to track the performance of SHOP stocks over time.
Shopify shares at a glance
|Latest market close||$1245.1|
|52-week range||$685 - $1499.75|
|50-day moving average||$1141.9774|
|200-day moving average||$1141.2758|
|Wall St. target price||$1484.89|
|Dividend yield||N/A (0%)|
|Earnings per share (TTM)||$12.788|
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Note: The dollar amounts in the table below are in Canadian dollars.
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.
Shopify price performance over time
|1 month (2021-04-15)||3.04%|
|3 months (2021-02-12)||-14.45%|
|6 months (2020-11-13)||35.59%|
|1 year (2020-05-15)||62.33%|
|2 years (2019-05-15)||371.34%|
|3 years (2018-05-15)||773.75%|
|5 years (2016-05-13)||4,636.02%|
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 83x. In other words, Shopify shares trade at around 83x 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 (earnings before interest, taxes, depreciation and amortisation) is USD$424.7 million.
The EBITDA is a measure of a Shopify's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||USD$3.4 billion|
|Operating margin TTM||10.51%|
|Gross profit TTM||USD$1.5 billion|
|Return on assets TTM||3.17%|
|Return on equity TTM||26.42%|
|Market capitalisation||USD$132.7 billion|
TTM: trailing 12 months
How to short and sell Shopify shares
- Create a CFD or spread betting account.
- Search for the stock code. E.g. "SHOP.US"
- Choose your position size.
- Select "sell" rather than "buy".
- Confirm your position and keep tabs on it. You may wish to set limits on your position.
There are currently 1.4 million Shopify shares held short by investors – that's known as Shopify's "short interest". This figure is 23.8% down from 1.8 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 1.2 million). Shopify's SIR currently stands at 1.1. In other words for every 100,000 Shopify shares traded daily on the market, roughly 1100 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 0.0214% of the tradable shares (for every 100,000 tradable Shopify shares, roughly 21 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. However, you can browse other dividend-paying shares in our guide.
Shopify share price volatility
Over the last 12 months, Shopify's shares have ranged in value from as little as $685 up to $1499.75. A popular way to gauge a stock's volatility is its "beta".
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 1.4305. 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 Inc., a commerce company, provides a commerce platform and services in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company's platform provides merchants to run their business in various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, and access financing. It also sells custom themes and apps, and registration of domain names. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is headquartered in Ottawa, Canada.
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