SHOP is trading at $53.14 with a trading volume of 12.154 Million and the average trading volume of the last 10 days being 10.4 Million. The current market cap of the company is $68.167 Billion with a price-to-earnings ratio of N/A. The floating share value is 1.159 Million with a basic EPS of -$1.59.
The Q2 2023 earnings of the company gave a revenue of $1.69 Billion and a net income of -$1.31 Billion with a profit margin of -77.39%. However, the profit margin of the stock was less than the Q1 2023 earnings.
This year SHOP’s performance was excellent. Since the beginning of the year, the company gave a return of 48.89%. However, recently, a weakness in momentum has been observed.
As per TradingView, out of 46 analysts,14 are on the ‘strong buy’ side, 3 are on the ‘buy’ side, 27 rated it ‘hold,’ and 2 of them indicate a strong sell signal. However, the overall weightage of analysts is on the buying side.
As per TradingView, 13 analysts gave a maximum estimation of a price to be $80.00 and a minimum estimation of a price to be $52.00.
Moreover, as per the TradingView indicator summary, 14 indicators are giving a sell signal, 8 are neutral, and 4 are on the buy side.
4-hour Charts
On the 4-hour charts, Shopify stock gave a much awaited breakdown, which was registered when the price sank below $57. Buyers tried to save the price unsuccessfully.
RSI shows sellers’ presence. The RSI curve is floating near 27, which indicates that the stock is oversold. This could be a sign that sellers are starting to lose control of the stock. However, the RSI is still in the neutral zone, so it is too early to say for sure that a breakdown is imminent.
MACD shows bearish momentum. The MACD indicator is bearish and is maintaining red bars on the histogram. This suggests that the momentum in the stock is bearish. However, the MACD is not yet in the oversold zone, so it is possible that the stock could stage a rally before breaking down.
SHOP Stock Daily Time Frame Technical Analysis
The charts and the technical indicators show that SHOP took a sharp rejection from the upper trendline and gave a breakdown to the rising channel. Moreover, the price was below the 50 and 200 SMAs at press time.
MACD breached the middle line and is headed downwards. MACD line (-2.14) is beneath the signal line (-2.18) demonstrating bearishness in the stock.
The RSI line is also heading towards an oversold zone, breaching the median line. RSI line (27.76) is beneath the 14 SMA (29.55) line demonstrating bearishness.
Conclusion
Shopify stock price is heading downwards, breaking the 50 and 200 EMAs. The MACD and RSI indicate a downtrend in SHOP price.
Technical Levels
- Support Levels: $48.54 and $39.81.
- Resistance Levels:$71.68 and $68.11.
Disclaimer
The analysis provided in this article is for informational and educational purposes only. Do not rely on this information as financial, investment, or trading advice. Investing and trading in stock involves risk. Please assess your situation and risk tolerance before making any investment decisions.
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/2023/08/19/shop-stock-the-key-factors-that-will-hurt-shopify-price-in-2023/