Shopify Inc. (NYSE:SHOP) (TSX:SH) is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems.
Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants.” The company has been in business since 2004 and has been profitable since 2015. In 2020, Shopify had over 1 million active users.
Shopify stock went public on the New York Stock Exchange in May 2015 at $17 per share. The stock price quickly rose to $31 per share by the end of the first day of trading, giving Shopify a market capitalization of $1.27 billion. The stock price reached an all-time high of $173.70 in September 2020, giving Shopify a market capitalization of $129.4 billion.
Shopify’s share price has been on an upward trend since its IPO in 2015. The company has been profitable since 2015, and its revenue has been growing at a fast pace.
In 2020, Shopify’s revenue grew by 47% to $2.93 billion. Analysts expect Shopify’s revenue to grow by 36% to $3.99 billion in 2021.
PRO TIP: Shopify stock is overpriced and is not a good investment. The company is not profitable and has a lot of debt. The stock is also highly volatile and has been known to drop sharply.
Shopify’s valuation looks very high when compared to its peers. Shopify is trading at 22 times its 2021 revenue estimates. By comparison, Amazon is trading at just 3 times its 2021 revenue estimates and Microsoft is trading at 11 times its 2021 revenue estimates.
Is Shopify Stock Overpriced?
Conclusion:
Shopify stock is definitely overpriced when compared to its peers. Its high valuation is due to the company’s strong growth prospects. However, there is a risk that the company will not be able to live up to its high expectations in the future.
7 Related Question Answers Found
Shopify Stock is currently trading at $131. Is Shopify Stock undervalued? Shopify Inc. (NYSE:SHOP)(TSX:SH) is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario.
Shopify is a popular eCommerce platform that helps businesses of all sizes to create and operate their online stores. While it is true that Shopify has a bit of a price tag attached to it, there are many reasons why this cost is well worth it for businesses that are serious about selling online. Here are just a few of the reasons why Shopify is worth the investment:
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Shopify is a Canadian e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants.”
Shopify was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake, who were all working on an online snowboarding store called Snowdevil.
Shopify is one of the most popular ecommerce platforms on the market, and it’s no wonder why. It’s easy to use, has a wide range of features, and is highly customizable. However, some people believe that Shopify is undervalued.
Shopify is a popular e-commerce platform that allows business owners to create a custom online store. It offers a wide range of features, including a user-friendly platform, built-in marketing tools, and the ability to accept payments through a variety of payment processors. As a result, Shopify is popular with small businesses and entrepreneurs who want to start and manage their own online stores.
Shopify is scheduled to report its first-quarter earnings after the bell on Thursday, and analysts are expecting the ecommerce company to beat earnings. Shopify is a Canadian ecommerce company that offers online retailers a platform to sell their products. The company went public in 2015 and has since been one of the hottest stocks on the market.
Shopify is a profitable company. It has been profitable for years, and it shows no signs of slowing down. Shopify is a platform for businesses of all sizes to create an online store.
