Why Are People Talking About Investing in SHOP?

By Ken Smith • Tuesday, December 05 19:36 • Permanent Link

With gains of 3.0%, Shopify was one of the winners on Wall Street today. Its shares are now trading at $74.72 and have logged a -0.0% daily outperformance of the S&P 500. Don't join the feeding frenzy before checking some basic facts about this stock:

SHOP has an average analyst rating of buy and is 9.82% away from its mean target price of $68.04 per share
Its trailing earnings per share (EPS) is $-0.9
Shopify has a trailing 12 month Price to Earnings (P/E) ratio of -83.0 while the S&P 500 average is 15.97
Its forward earnings per share (EPS) is $1.04 and its forward P/E ratio is 71.8
The company has a Price to Book (P/B) ratio of 11.58 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 35.0 and an average P/B of 7.92
The company has a free cash flow of $376.32 Million, which refers to the total sum of all its inflows and outflows of cash over the last quarter
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. The company's platform enables merchants to displays, manages, markets, and sells its products through 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, manage cash, payments and transactions, and access financing. It also sells custom themes and apps, and registration of domain names; and merchant solutions, which include accepting payments, shipping and fulfillment, and securing working capital. 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.

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.