E-Commerce giant Shopify’s SHOP Stock rallied 81% YTD & 9.83% after the May 6 announcement of selling its logistics arm to Flexport. Shopify finalized the sale on May 3, 2023, per the press release. Under the deal, the Canadian e-commerce giant will get stocks representing 13% equity interest in the leading tech-driven global logistics platform Flexport.
Shopify (NYSE: SHOP stock) – Financial Investigation
Founded in 2006 in Ottawa, Canada, the e-Commerce infra provider was previously named Jaded Pixel Technologies but rebranded to Shopify Inc in 2011. The rebranding strategy helped the company reach $5.5 Billion in sales in 2022.
SHOP share price saw a noticeable gap-up post of around 19% post earning announcements on May 4, 2023. The revenue was reported to be $1.508 Billion and was estimated to be $1.435 Billion. This gave a surprise of $73.48 Million and a jump of 5.12%.
Analysts are expecting a staggering growth of 715% in 2023. Moreover, at press time, SHOP stock is trading at $63.66, with a jump of 6.24% in the last 24 hours. Previous close and open were at $59.92 and $61.90, respectively. There was a positive change of 62.62% in the 52-week price action.
With an average volume of 18.43 Million shares, the market cap is $81.419 Billion. Also, the analysts provided a 2.30 rating for HOLD and placed a price target at $54.85 with a downside of 13.8%. Moreover, the short interest seems healthy, with 3.39% floats sold short.
Per the data from March 2023, the quarterly change in Shopify’s revenue is a hike of 25.25% to $1.51 Billion, while the trailing twelve-month (ttm) revenue is reported to be $5.9 Billion. Similarly, the revenue per share is $4.65, with a year-over-year (YoY) quarterly revenue growth of 25.20%.
Operating expenses jumped by 21.23% to $868.0 Million, the profit margin dropped 32.49%, and the operating margin suffered by 9.29%. Net income jumped by 104.61% to $68.00 Million, and the net profit margin gained 103.68% to 4.51. The gross profit (ttm) is $2.75 Billion.
Basic Earnings Per Share (EPS) is minus $1.52, while EBITDA is reported to be negative $446.04 Million. Total cash in hand at the end of the most recent quarter (mrq) is $4.86 Billion, and the company’s total debt is $1.4 Billion.
Shopify Inc. (SHOP Stock) – Candle Exploration
The northbound trajectory of EMA and the strength shown by the RSI of 59.18 indicate a bullish momentum. If the trend continues, the SHOP share price might enter the supply zone if it crosses the $64.00 barrier. Also, breaking down the immediate support is challenging and might take time.
The price action would consolidate within a range before deciding how to proceed. If the action tries to go south, it would first encounter EMA, then S1, and if the trajectory continues could bounce off S2. Overall the movement seems optimistic and should remain so until it faces further hurdles.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/07/shopify-inc-shop-stock-sold-its-logistics-arm-worthy/