Shopify Stock Performance

SHOP Stock  USD 77.52  0.37  0.48%   
Shopify has a performance score of 2 on a scale of 0 to 100. The entity has a beta of 2.33, 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 right now has a risk of 3.05%. Please validate Shopify value at risk, as well as the relationship between the skewness and day median price to decide if Shopify will be following its existing price patterns.

Risk-Adjusted Performance

2 of 100

 
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Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Shopify are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Shopify is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors. ...more

Actual Historical Performance (%)

One Day Return
0.48
Five Day Return
(1.29)
Year To Date Return
5
Ten Year Return
4.5 K
All Time Return
4.5 K
Last Split Factor
10:1
Last Split Date
2022-06-29
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Begin Period Cash Flow1.6 B
  

Shopify Relative Risk vs. Return Landscape

If you would invest  7,542  in Shopify on December 20, 2023 and sell it today you would earn a total of  210.00  from holding Shopify or generate 2.78% return on investment over 90 days. Shopify is currently generating 0.0928% in daily expected returns and assumes 3.0505% 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  
Given the investment horizon of 90 days Shopify is expected to generate 1.42 times less return on investment than the market. In addition to that, the company is 5.41 times more volatile than its market benchmark. It trades about 0.03 of its total potential returns per unit of risk. The NYSE Composite is currently generating roughly 0.23 per unit of volatility.

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 = 0.0304

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Estimated Market Risk

 3.05
  actual daily
26
74% of assets are more volatile

Expected Return

 0.09
  actual daily
1
99% of assets have higher returns

Risk-Adjusted Return

 0.03
  actual daily
2
98% of assets perform better
Based on monthly moving average Shopify is performing at about 2% of its full potential. 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 it 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.

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 ReportedProjected for 2024
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 had very high historical volatility 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 simplywall.st: Is Shopify Inc. Expensive For A Reason A Look At Its Intrinsic Value
Evaluating Shopify's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate Shopify's stock performance include:
  • 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.
It's essential to remember that evaluating Shopify's stock performance is not an exact science, and many factors can impact Shopify's stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.
When determining whether Shopify is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Shopify Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Shopify Stock. Highlighted below are key reports to facilitate an investment decision about Shopify Stock:
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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.