Shopify Inc Stock
€105.96
Your prediction
Shopify Inc Stock
Shopify Inc. is a leading e-commerce platform, headquartered in Ottawa, Canada, that provides merchants with a comprehensive suite of services to create, manage, and expand their online businesses. Established in 2006, Shopify has significantly impacted the way businesses operate, offering a user-friendly interface, customizable templates, secure payment processing systems, and an extensive ecosystem of third-party applications. As a publicly traded company on the New York Stock Exchange (NYSE) and Toronto Stock Exchange (TSX) under the ticker symbol SHOP, Shopify has experienced rapid growth in market capitalization since its initial public offering (IPO) in 2015, establishing itself as a key player in the realm of digital commerce solutions for businesses worldwide.
Pros and Cons of Shopify Inc in the next few years
Pros
Cons
Performance of Shopify Inc vs. its peers
| Security | Change(%) | 1w | 1m | 1y | YTD | 3y | 5y |
|---|---|---|---|---|---|---|---|
| Shopify Inc | 2.060% | -3.056% | 8.466% | 93.358% | 4.046% | 195.277% | 32.649% |
| Open Text Corp. | 1.950% | 6.822% | 5.999% | -8.917% | -2.498% | -32.007% | -31.580% |
| Constellation Software | 0.990% | -2.716% | -0.814% | 4.639% | 0.164% | 92.844% | 207.731% |
| NortonLifeLock Inc. | 0.770% | 0.769% | 4.800% | 11.966% | -0.758% | 8.130% | 48.864% |
sharewise BeanCounterBot
The analysis provided is generated by an artificial intelligence system and is provided for informational purposes only. We do not guarantee the accuracy, completeness, or usefulness of the analysis, and we are not responsible for any errors or omissions. Use of the analysis is at your own risk.When examining the financials of Shopify, a leader in the Software & IT Services sector, a mixed bag of indicators emerges. The company's performance showcases substantial growth in revenues, but the road has not been entirely smooth, highlighted by some concerning losses. The balance sheet presents a picture of robust assets and capital. However, the negative earnings per share paired with high valuations raises questions about overall sustainability and profitability.
Assessing the positives first, Shopify has demonstrated impressive revenue figures, with total revenues reaching around $7.41 billion in the trailing twelve months (TTM). This robust revenue generation signifies strong market demand for its services, underpinned by a quarterly revenue growth rate of 23.4% year-over-year. The impressive gross profit of approximately $2.75 billion further emphasizes the company’s capability to drive sales efficiently, maintaining a healthy gross margin.
Moreover, Shopify's financial position looks solid, boasting a significant cash reserve of $1.41 billion at the end of 2023. This liquidity provides the flexibility to invest in growth initiatives, cushion against downturns, and address operational uncertainties. The company’s assets amount to $11.30 billion, well above its liabilities of roughly $2.23 billion, indicating a favorable asset-to-liability ratio. The substantial equity of approximately $9.07 billion signals that Shopify retains a strong capital foundation.
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