Shopify (SHOP.US) shares rose over 6.0% at the beginning of the week after Deutsche Bank analysts upgraded the e-commerce company to buy from hold and raised the stock-price target to $50 from $40 citing growing interest among brands which could lead to a 20.0% rally.
-
"Many leading brands are now actively looking to migrate or are in the process of migrating over from legacy/competing solutions and we note this is in sharp contrast to our conversations over the last 12 months which consistently highlighted the pace of migrations slowing," wrote analyst Bhavin Shah.
-
Investors will be able to assess recent performance of the company on February 15, when Q4 results will be published.
Shopify revenue growth slowed down significantly in 2022 similar to other pandemic darlings. Nevertheless, the company posted over 21% revenue growth in Q3 2022, which is an optimistic sign, taking into account the difficult macroeconomic environment. Also thanks to the recent sell-off, market expectations are more reasonable. According to an eMarketer report, retail e-commerce sales growth is expected to hover between 8% and 10% over the next few years. Another eMarketer report showed that Shopify claimed 10.3% of e-commerce sales in the US by 2021, second only to Amazon with 41%. Source: The Motley Fool/ YCharts
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Shopify (SHOP.US) stock launched today's session higher, and is approaching the upper limit of the consolidation zone at $45.60. Also recently medium-term 50-day SMA (green line) crossed above the long-term 200-day SMA (red line). This has formed a bullish ‘golden cross’ which can at times precede a move higher. Should a break higher occur, an upward move may accelerate towards resistance at $59.80, which coincides with 23.65 Fibonacci retracement of the massive downward correction launched in November 2021. On the other hand, if sellers manage to halt advances, then another downward impulse may be launched towards the lower limit of the consolidation at $24.00. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
