Is Shopify (SHOP) a Buy or Sell in 2019? Top Reasons to Invest in Shopify (SHOP) Stock

By
Maja Rogic
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Shopify stock (SHOP) surged from its 30-day low of 250$ per share as recorded in May, to the month’s high of 282$ per share around May 28th, gaining over 32$ per share in the course of 15 days.

Later on, the stock touched the value of 274$ per share, while some analysts believe that the present price is the perfect value for Shopify stock as the market has welcomed June 2019.

However, there are several reasons to believe that Shopify (SHOP) can surge back to May highs and beyond in the following period.

Shopify Stock May Surge in the Following Period: Shopify Growth and Revenue

While analysts going bearish on SHOP stock consider that the present price of Shopify stock is the top performance the stock is able to acquire in the following period, other analysts remain bullish on the stock.

Bulls suggest that Shopify is only getting started, referring to growth and reported revenues of the company.

Although the growth is slowing down the latest, it is expected to see the sales increased by 40% and 50%. In the meanwhile, Shopify reported 70% growth year to year in the period of the last three years.

Shopify Market Cap, Market Share and Potential in the E-commerce Sector

Shopify has a market cap of 40 billion dollars, however, the value to opportunity in the sector of e-commerce is larger for the company based on Shopify’s growth rate and performance.

Over the last several years, Shopify managed to attract and keep over 1 million subscribers in addition to existing userbase, while it is considered that Wall Street appreciates subscription model when investing in tech stocks.

Based on the historical metrics, Shopify should be able to increase the market share in the sector of e-commerce and keep the leading rates.

Shopify and Customer Relations

The company is working on different strategies that would intensify the relationship that Shopify has with their customers.

One of such revenue streams is Shopify Capital which allows entrepreneurs to acquire loans at low-interest rates for starting their business. This revenue stream could potentially raise the value of SHOP stock.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.