Shopify Set to Release Q3 Earnings: Expectations and Stock Analysis

Shopify Inc SHOP is slated to announce its third-quarter earnings on Tuesday, with Wall Street predicting an EPS of 27 cents and revenues reaching $2.11 billion. The announcement will occur before the market opens.

Over the past year, Shopify’s stock has risen by 47.31%, with a year-to-date increase of 24.38%.

This article will delve into current stock trends and how they align with Wall Street forecasts.

Shopify’s Stock Performance: A Bullish Trend

Shopify’s stock has recently exceeded critical moving averages, establishing a strong bullish trend that attracts more investors.

Chart created using Benzinga Pro

Currently priced at $87.12, Shopify shares sit well above their five-, 20-, and 50-day exponential moving averages, indicating robust buying interest.

Noteworthy technical indicators include an eight-day simple moving average (SMA) of $81.23 and a 20-day SMA of $81.23, both indicating bullish conditions. Additionally, a 50-day SMA at $78.41 reinforces the potential for continued growth. Even the 200-day SMA, resting at $72.18, is significantly lower, pointing to strong momentum.

The MACD reading of positive 1.15 supports this upward trend. However, with a high Relative Strength Index (RSI) of 69.6, the stock may be approaching overbought levels, indicating that profit-taking could be on the horizon.

Market Consensus and Price Targets

Analysts maintain a consensus rating of “Buy” for Shopify, with an average price target set at $78.93. Recent ratings from Scotiabank, RBC Capital, and Loop Capital suggest a higher average target of $90, reflecting a small downside risk of approximately -1.3% from current levels.

Current Stock Activity: As of Monday, Shopify stock was observed trading up 4.07% at $90.66.

What’s Next?

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