How to Buy Shopify Stock
Shopify Inc
Shopify is a app company located in Ontario, Canada, which is part of the Technology sector, and is traded under the ticker SHOP on the NYSE exchange.
Shopify stock last closed at $72.00, up 2.27% from the previous day, and has increased 53.91% in one year. It has overperformed other stocks in the Software - Application industry by 0.29 percentage points. Shopify stock is currently +58.24% from its 52-week low of $45.50, and -21.37% from its 52-week high of $91.57.
At the moment, there are 1.29B shares of SHOP outstanding. The market cap of SHOP is $92.63B. In the past 24 hours, 5.33M SHOP shares were traded.
How to Buy Shopify Stock
Not sure how to invest in Shopify stock? Here's how.
- Choose where to buy Shopify stock: You need to decide on a stock brokerage, but don't worry - we've analyzed dozens of stock brokerages and apps to help you figure out where to buy Shopify stock.
- Sign up for your brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've identified.
- Deposit money your investment account: Pick your payment method and add your information.
- Research Shopify stock: The Shopify ticker symbol is SHOP. Is Shopify stock a good investment? Should you buy shares of SHOP? How do SHOP's underlying business fundamentals look? Do top analysts think Shopify is a good buy? Why has SHOP's stock price moved recently? (Hint: Our stock market analysis tools can help you figure out if SHOP is a good stock to buy).
- Make your SHOP purchase: Decide if you will purchase SHOP shares at the current market price or use a limit order to buy SHOP shares at a given price.
- Keep tabs on your SHOP investment: Create a watchlist to monitor your new investment in Shopify stock.
Step 1: Choose where to buy Shopify stock
You need an online brokerage account in order to access the NYSE market and buy SHOP shares.
Our preferred brokerage: eToro
Based on our experience, eToro is the best stock brokerage. eToro gives you:
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- Social investing: eToro boasts a community with more than 20 million users around the world. Talk to, learn from, and copy the crypto trades of top investors.
- Security: eToro is a regulated and licensed fintech leader.
- Buy other assets: Such as ETFs and cryptos.
Get $10 towards your share purchase by signing up for an account with eToro today.
Open eToro AccountStep 2: Sign up for your brokerage account
Now that you've selected the right brokerage, you'll need to fill out some personal details so you are able to invest in SHOP today.
How to Open a New Account on eToro
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Enter your personal data to create your new trading account.
- Submit your information by pressing the "Create Account" button. Get started with eToro today
Step 3: Deposit money your investment account
Now that you've created your account on the best free stock trading app, you can securely and quickly fund your account:
Check out the walkthrough below for more details depositing funds into your new brokerage account.
Step 4: Research Shopify stock
Once you have selected the best place to buy Shopify stock, it's crucial to research their stock before you invest, so you truly wrap your head around the risk and upside.
Shopify shares at a glance
Fundamentals of Shopify
WallStreetZen was created to help average investors perform better fundamental analysis.
You can see all of the due diligence checks on SHOP's stock page.
Is SHOP stock overvalued?
Investors use a variety of different financial metrics, analyses, models, and charts to gauge SHOP's fair value.
Using relative valuations ratios:
- SHOP may be overvalued based on its P/E ratio of 720x, relative to Software - Application industry P/E ratio of 87.61x
- SHOP may be overvalued based on its P/B ratio of 10.22x, relative to Software - Application industry P/B ratio of 6.41x
- SHOP could be overvalued based on its PEG ratio of 6.53x
You can do more valuation research on SHOP's stock here.
Is SHOP a healthy company?
Signs that SHOP is financially healthy:
- There are more short-term assets than long-term liabilities on the SHOP balance sheet.
- SHOP has a low debt to equity ratio of 0.25.
- There are more short-term assets than short-term liabilities on the SHOP balance sheet.
- SHOP's operating cash flow of $944.00M allows it to safely service it's debt of $1.15B.
- SHOP earnings of $185.00M is not enough to cover its interest payments.
- SHOP profit margin has gone up from -61.8% to 1.9% in the past year.
Signs that SHOP is not financially healthy:
- Total SHOP debt is higher than 5 years ago, relative to shareholder equity.
Is Shopify stock a Buy, Hold, or Sell, according to analysts?
Out of 13 Equities analysts who give ratings on SHOP, the consensus analyst rating on SHOP is a Buy
Please note that analyst forecasts are not recommendations, nor are they investment advice.
Most Recent SHOP Analyst Recommendations
Gabriela Borges, a top 18% analyst from Goldman Sachs maintains SHOP with a hold rating and raises their SHOP price target from $67.00 to $75.00, on Feb 29, 2024.
Timothy Chiodo, a top 24% analyst from UBS maintains SHOP with a hold rating and raises their SHOP price target from $75.00 to $80.00, on Feb 14, 2024.
Andrew Bauch, a bottom 26% analyst from Wells Fargo maintains SHOP with a strong buy rating and lowers their SHOP price target from $90.00 to $85.00, on Feb 14, 2024.
Siti Panigrahi, a bottom 7% analyst from Mizuho maintains SHOP with a hold rating and raises their SHOP price target from $65.00 to $75.00, on Feb 14, 2024.
Trevor Young, a top 30% analyst from Barclays maintains SHOP with a hold rating and lowers their SHOP price target from $70.00 to $68.00, on Feb 14, 2024.
Barclays's Trevor Young lowered their price target on Shopify (NYSE: SHOP) by 2.9% from $70 to $68 on 2024/02/14. The analyst maintained their Hold rating on the stock.
The analyst made their price target move on Shopify after seeing the company's Q4 and FY 2023 earnings, reported on 2024/02/13.
Young said they cut their price target because "the stock is under pressure because management's low teens sequential Opex growth guidance disappointed against 'lofty' buy-side expectations."
That being said, however, the analyst argued that "Shopify is executing exceptionally well and the Opex concern is more an issue of expectations running too far ahead."
Earnings Report
Shopify reported:
For Q4 2023:
EPS of $0.34, which beat the Zacks Consensus Estimate by 9.68% and, by 385.7%, Q4 2022's $0.07.
Revenue of $2.144B, which beat the Zacks Consensus Estimate by 3.66% and FY 2022's $1.735B by 23.6%.
GMV (Gross Merchandise Volume) of $75.1B, up 23% from Q4 2022's $60.9B.
For FY 2023:
- EPS of $0.73, up 985.7% from FY 2022's $0.04.
- Revenue of $7.06B, up 26.1% from FY 2022's $5.6B.
- GMV of $235.9B, up 20% from FY 2022's $197.2B.
For Q1 2024, management guided:
- Revenue up in the low twenties (percent) Y/Y.
- Adjusting for a 500 bps to 600 bps headwind related to the divestiture of the logistics business, revenue up in the mid to high twenties (percent) Y/Y.
- Gross margin up 150 bps sequentially.
- Free cash flow up in the high single digits (percent), with sequential improvement every quarter of the year
- Opex up in the low teens (percent) sequentially.
President Harley Finkelstein commented: “2023 was an incredible year for both Shopify and our merchants.
"Our strong Q4 and annual results are a powerful testament to the progress we have made building fast, reliable, and unified software for merchants of all sizes.
“As we look ahead to 2024, our focus remains on driving innovation in an ever-evolving commerce landscape, delivering products that will propel our merchants’ businesses forward, with the support of our world-class talent and our valued merchants and partners.”
“Our GMV growth accelerated in Q4 and for all of 2023, which powered Shopify’s strong financial results.
CFO Jeff Hoffmeister added: "In Q4 we delivered Y/Y revenue growth of 24%, which represents 30% growth when adjusting for the sale of our logistics businesses, and achieved an operating income margin of 13% and a free cash flow margin of 21%.
“For 2024, we look to build on the momentum that we achieved in 2023 and continue to deliver a strong combination of both top-line growth and profitability.”
You can dive deeper into what analysts are forecasting on the Shopify stock forecast page.
Metrics for Advanced SHOP Traders
SHOP Growth Metrics
Last year, SHOP earnings were $132.00M. In the last 3 year, SHOP's earnings have increased by -85.52% per year. This was slower than the Software - Application industry average of 29.18%.
Last year, SHOP revenue was $7.06B. Over the last five year, SHOP's revenue has increased by 45.75% per year. This was faster than the Software - Application industry average of 26.72%.
You can research SHOP's earnings and revenue performance here.
Who is buying/selling SHOP?
Over the last 12 months, insiders at SHOP have not bought or sold any shares.
Get more info about who owns SHOP shares here.
Does SHOP stock generate passive income?
No, Shopify doesn't provide an income stream by paying out dividends.
SHOP Social Trading Data
One of the reasons eToro is our top-rated brokerage is because of its social trading community.
Click below to see what other traders have to say.
Step 5: Make your SHOP purchase
There are two main order types:
- Market order: A market order is an order to buy or sell a stock at the best possible price.
Market orders are usually the best for newer investors. - Limit order: A limit order allows you to buy or sell a stock at a specific price (or better).
If you want to make sure you're buying or selling at a particular dollar amount, use a limit order.
Hit the Open Trade button and your broker will place your order.
If you need more info about investing in stocks on eToro, click the how to video below:
Step 6: Keep tabs on your SHOP investment
Now that you own some shares in SHOP, you'll want to stay up-to-date on your stock purchase.
Add SHOP to a watchlist to get the latest updates about your SHOP stock.
SHOP Feed
How to Buy Stock in Shopify
To summarize, here are the 6 steps you need to take to buy Shopify stock right now:
- Choose where to buy Shopify stock
- Sign up for your brokerage account
- Deposit money your investment account
- Research Shopify stock
- Make your SHOP purchase
- Keep tabs on your SHOP investment
If you need a online brokerage, eToro is our favorite venue.
Get Started with eToro TodayIf you want to keep track of your investment in Shopify, click below.
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