Shopify stock surges 21.5% in one month, strong Q2 results, positive long-term prospects.

From Nasdaq: 2024-08-22 12:08:00

Shopify (SHOP) shares have surged 21.5% in the past month, outperforming the sector and industry. Q2 results saw revenues grow 20.7% to $2.05 billion, with adjusted earnings of 26 cents per share beating estimates. Q3 guidance looks promising with low-to-mid-twenties revenue growth expected.

The strong merchant base and expanding partner base are boosting Shopify’s long-term prospects. In Q2, offline GMV jumped 27% year over year. Shop Pay processed $16 billion in GMV, while B2B GMV hit a record high. The integration of Shop Pay Installments makes it easier for merchants to engage customers.

An expanding partner base including TikTok, Snap, and Amazon is expected to drive merchant base growth. Shopify’s international footprint is growing with new launches and partnerships. However, SHOP stock is trading at a premium and has a stretched valuation according to the Value Score of D.

Shopify’s technical indicator is bullish with shares trading above the 50-day moving average. While the current valuation is a concern, the long-term growth potential of Shopify is strong. Investors may want to wait for a more favorable entry point before investing in Shopify.



Read more at Nasdaq: Shopify Gains 21.5% in a Month: How Should You Play SHOP Stock?