Shopify Stock Performance
| SHOP Stock | USD 70.55 1.71 2.37% |
The entity has a beta of 2.32, which indicates a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Shopify will likely underperform. Shopify has an expected return of -0.23%. Please make sure to validate Shopify total risk alpha, kurtosis, as well as the relationship between the Kurtosis and day typical price , to decide if Shopify performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
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Over the last 90 days Shopify has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in May 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors. ...more
Actual Historical Performance (%)
One Day Return (1.80) | Five Day Return (0.05) | Year To Date Return (3.89) | Ten Year Return 4.1 K | All Time Return 4.1 K |
Last Split Factor 10:1 | Last Split Date 2022-06-29 |
1 | 1000 Invested In Shopify 5 Years Ago Would Be Worth This Much Today | 03/26/2024 |
2 | Stripe Crosses 1 Trillion In Total Payment Volume As Consumer-Fueled Debt Binge Reaches New Heights | 04/03/2024 |
3 | Acquisition by Eisenberg Michael A of 75000 shares of Shopify subject to Rule 16b-3 | 04/05/2024 |
4 | Best Stock to Buy Right Now Shopify vs. Amazon | 04/08/2024 |
5 | Spotting Winners BigCommerce And E-commerce Software Stocks In Q4 | 04/15/2024 |
6 | Companies Like SHEIN Are Working With Airwallex Heres Why, How It Could Help Your Business | 04/16/2024 |
7 | Why the Market Dipped But Shopify Gained Today | 04/17/2024 |
8 | Chow Tai Fook aims to revamp brand and its 8,000 mainland and Hong Kong stores | 04/18/2024 |
9 | Investors Heavily Search Shopify Inc. Here is What You Need to Know | 04/19/2024 |
10 | TikTok Shop Launches Secondhand Luxury Fashion Category in UK | 04/22/2024 |
11 | Shopify snaps six-day winning streak | 04/24/2024 |
| Begin Period Cash Flow | 1.6 B |
Shopify |
Shopify Relative Risk vs. Return Landscape
If you would invest 8,354 in Shopify on January 27, 2024 and sell it today you would lose (1,299) from holding Shopify or give up 15.55% of portfolio value over 90 days. Shopify is currently does not generate positive expected returns and assumes 2.9886% risk (volatility on return distribution) over the 90 days horizon. In different words, 26% of stocks are less volatile than Shopify, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon. Expected Return |
| Risk |
Shopify Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Shopify's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Shopify, and traders can use it to determine the average amount a Shopify's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0761
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | SHOP |
Estimated Market Risk
| 2.99 actual daily | 26 74% of assets are more volatile |
Expected Return
| -0.23 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.08 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Shopify is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Shopify by adding Shopify to a well-diversified portfolio.
Shopify Fundamentals Growth
Shopify Stock prices reflect investors' perceptions of the future prospects and financial health of Shopify, and Shopify fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Shopify Stock performance.
| Return On Equity | 0.0153 | ||||
| Return On Asset | 0.0147 | ||||
| Profit Margin | 0.02 % | ||||
| Operating Margin | 0.22 % | ||||
| Current Valuation | 89.12 B | ||||
| Shares Outstanding | 1.21 B | ||||
| Price To Earning | 282.85 X | ||||
| Price To Book | 9.94 X | ||||
| Price To Sales | 12.76 X | ||||
| Revenue | 7.06 B | ||||
| Gross Profit | 2.75 B | ||||
| EBITDA | (88 M) | ||||
| Net Income | 132 M | ||||
| Cash And Equivalents | 1.65 B | ||||
| Cash Per Share | 3.88 X | ||||
| Total Debt | 1.15 B | ||||
| Debt To Equity | 0.15 % | ||||
| Current Ratio | 6.64 X | ||||
| Book Value Per Share | 7.05 X | ||||
| Cash Flow From Operations | 944 M | ||||
| Earnings Per Share | 0.10 X | ||||
| Market Capitalization | 90.35 B | ||||
| Total Asset | 11.3 B | ||||
| Retained Earnings | (390 M) | ||||
| Working Capital | 5.38 B | ||||
| Current Asset | 202.47 M | ||||
| Current Liabilities | 37.24 M | ||||
About Shopify Performance
To evaluate Shopify Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Shopify generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Shopify Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Shopify market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Shopify's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.| Last Reported | Projected for Next Year | ||
| Days Of Inventory On Hand | 10.89 | 9.45 | |
| Return On Tangible Assets | 0.01 | 0.01 | |
| Return On Capital Employed | 0.01 | 0.01 | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | 0.01 | 0.02 |
Things to note about Shopify performance evaluation
Checking the ongoing alerts about Shopify for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Shopify help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| Shopify generated a negative expected return over the last 90 days | |
| Shopify is unlikely to experience financial distress in the next 2 years | |
| Shopify has a strong financial position based on the latest SEC filings | |
| About 71.0% of the company shares are owned by institutional investors | |
| Latest headline from seekingalpha.com: Shopify snaps six-day winning streak |
- Analyzing Shopify's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Shopify's stock is overvalued or undervalued compared to its peers.
- Examining Shopify's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating Shopify's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Shopify's management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of Shopify's stock. These opinions can provide insight into Shopify's potential for growth and whether the stock is currently undervalued or overvalued.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shopify. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons. To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Complementary Tools for Shopify Stock analysis
When running Shopify's price analysis, check to measure Shopify's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Shopify is operating at the current time. Most of Shopify's value examination focuses on studying past and present price action to predict the probability of Shopify's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Shopify's price. Additionally, you may evaluate how the addition of Shopify to your portfolios can decrease your overall portfolio volatility.
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Is Shopify's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Shopify. If investors know Shopify will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Shopify listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 4.858 | Earnings Share 0.1 | Revenue Per Share 5.509 | Quarterly Revenue Growth 0.236 | Return On Assets 0.0147 |
The market value of Shopify is measured differently than its book value, which is the value of Shopify that is recorded on the company's balance sheet. Investors also form their own opinion of Shopify's value that differs from its market value or its book value, called intrinsic value, which is Shopify's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Shopify's market value can be influenced by many factors that don't directly affect Shopify's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Shopify's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shopify is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shopify's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.