Shopify Stock Is Skyrocketing - Is It Too Hot to Handle?

We're taking a closer look at Shopify, whose shares are on fire today. So far, its shares moved 12.8% compared to 2.9% for the S&P 500. Increased investor interest and volatility surrounding the stock are not reason enough to buy in -- you should first perform your own due diligence. Here are some figures that can get you started:

  • Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.

  • Shopify has moved -78.9% over the last year compared to -15.4% for the S&P 500 -- a difference of -63.6%

  • SHOP has an average analyst rating of hold and is -60.99% away from its mean target price of $80.3 per share

  • Its trailing 12 month price to earnings (Eps) is $0.13 per share

  • Shopify has a trailing 12 month Price to Earnings (P/E) ratio of 241.0 while the S&P 500 average is 15.97

  • Its forward 12 month price to earnings (Eps) is $0.13 per share and its forward P/E ratio is -1044.2

  • SHOP has a Price to Earnings Growth ratio of 2.62, which shows the company is potentially overvalued when we factor growth into the price to earnings calculus.

  • The company has a Price to Book (P/B) ratio of 4.5 in contrast to the S&P 500's average ratio of 2.95

  • Shopify is part of the Technology sector, which has an average P/E ratio of 26.5 and an average P/B of 5.57

  • Shopify has on average reported free cash flows of $208,023,750.00 over the last four years, during which time they have grown by an an average of 952.8%

  • SHOP's gross profit margins have averaged 54.2 % over the last four years, during which time they had a growth rate of -1.0 % and a coefficient of variability of 2.4 %.

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The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.