Shopify, Inc. (SHOP): What is causing SHOP’s stock to rise despite pandemic effects?

Stifel analysts last week renewed their recommendation of Shopify, Inc. (SHOP). As a result, investors seem to have been convinced by the analysts’ arguments concerning SHOP shares.

The 2021 Backdoor Crypto Portfolio (free)

Even if you’re not actively in crypto, you deserve to know what’s actually going on...

Because while leading assets such as Bitcoin (BTC) and Ethereum (ETH) are climbing in value, a select group of public “crypto stocks” are surging right along with them. More importantly, these stocks are outpacing the returns these leading crypto assets aren already producing.

Click here to get the full story… along with our long list of backdoor Bitcoin strategies. It’s free.


Analysts believe Shopify has huge potential both to grow globally and by expanding the toolkit to online store owners. Besides, Stifel estimates the market size of the Shopify e-commerce platform at several billion dollars, so the software provider has a lot of room to grow. Stifel analysts gave Shopify a ‘Buy’ rating and set a price target of $1,200.

It is expected that more merchants are interested in opening online stores, which are likely to increase demand for Shopify, Inc. (SHOP). Based on Stifel’s analysis, Shopify is best placed to benefit from the coronavirus-fueled e-commerce boom.

As of the end of the fourth quarter, Shopify’s revenue was $ 978 million, almost double what it was a year ago. Earnings increased to $ 124 million, or $ 0.99 per share. That’s up from $ 4 million, or $ 0.01 per share, a year earlier in the fourth quarter. Having launched on the Shopify platform for the first time in the past quarter, small merchants experienced higher sales due to the lockdown of stores and their closure. The Shopify platform may not be utilized by many of these stores once the pandemic has ended. Even before the lockdown, e-commerce saw strong growth, and Wall Street analysts, such as Stifel, agree with this.

Shopify Inc. (SHOP) closed the last trading day at $1155.41, up 4.42%. There were 1,16 million shares traded, which is lower than the average volume over the last three months of 1,41 million. During the trading session, the stock fluctuated between $1,137.02 and $1,178.98. EPS for the SHOP stock was 2.56. Its shares have gained 8.83% of their value in the last five days and moved -5.32% in the last month, but are up 2.07% for the year. SHOP’s 50-day moving average of $1,218.40 is above the 200-day moving average of $1,073.19. Also, the stock has a current RSI of 50.62.

Get The Best Stocks To Trade Every Day!

Join now to get the pre-market morning brief 100% free