Is Shopify Stock a Buy Now?

Shopify Stock Analysis: Is it Overvalued?

The Shopify stock (SHOP) is arguably one of the most hyped assets in the software application category in 2020 with its stock price going from $305 to over $1,000 in only 3 months. 

Shopify is the one-stop-shop for small businesses and e-commerce entrepreneurs where you can create a website backed by powerful tools that help you find customers, drive sales, and manage your day-to-day.

With the rumors of Shopify buying out Stamps.com the volatility has got real and now, the bears and bulls of Wall Street are literally going head to head, ranging from those VERY bullish to those who are VERY bearish.

So obviously, I had no choice but to put my Invest Diva hat on and chime in to see what could be next for the Shopify stock price.

In this video, I’m going to analyze the Shop stock from the 5 points of my signature Invest Diva Diamond Analysis (IDDA) which analyzes any asset from 5 points: fundamentals, technicals, market sentiment, risk assessment and overall how it can fit in your portfolio, to find out what the future holds for the Shop stock price in the medium and long-term, what type of investors can consider adding the Shopify stock (SHOP) to their portfolio, and of course, whether or not I’m personally invested in the Shop stock.

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Shopify Stock Analysis – Fundamentals

The Canadian based, Shopify, is the leading platform for small businesses, and it’s supported by the largest number of merchants of any platform. The company could continue to drive strong revenue growth over the medium term thanks to More merchant subscriptions and add-on features like Payments, SFN, and Shipping.

They have been really good with their marketing. Their team has been using search engine optimization, blogs, and network referrals to attract their small business customers. Their scaling will help with margin expansion as well. They’re also expanding with larger businesses, creating customized platforms for those who pay them up to $2,000 per month. This shows they’re prepping to guide their customers up in their value ladder.

Shopify crossed an important milestone of signing up the 1 millionth merchant on its platform in 2019. But fans say that’s nothing if you compare it to the 28.8 million small businesses that could eventually move their business to the Shopify platform and exponentially grow its business. Not to mention that worldwide opportunity is massive.

Shopify Stock Market Sentiment Analysis

We have analysts ranging from very bearish to very bullish when it comes to the Shopify stock. Each analyst focuses only on points that support their respective views on the Shop stock price. 

Shopify Bulls Say…

  • Shopify’s growth has been strong and is expected to remain so.
  • Shopify is simple to use and has a wide variety of built-in features that make it an all-in-one solution.
  • The company has many experts to help SMBs with website design, photography, and other elements of the process. It also benefits from a large referral and developer ecosystem.

Shopify Bears Say…

  • The Canadian company may still fail to live up to optimistic assumptions already priced in the share price.
  • Shopify is overexposed to the economic cycle, and retail volume would probably decline in a downturn.
  • With COVID-19 many businesses looked to bring their businesses online which helped SHOP. But this trend could end or a competitor could take over.

To learn about 10 stocks I like more than Shopify today, click here to join Invest Diva’s Premium Investing Group aka PIG.

You might also like: Tesla Stock Price Analysis 2020 | Is TSLA Still A Good Buy Or Did You Miss Out?

Shopify Stock Price – Technical Analysis

The Shopify stock has found a serious resistance at $1,075 which is the all-time-high level as well.  We were expecting the pullback to get the price point to $849 but this week the bulls seem to have regained strength.

The price remains above the daily Ichimoku cloud. Medium-term profit targets are at $1075 and $1281 respectively.

Please watch this video for the full technical analysis.

Check out my book Ichimoku Secrets.

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