Shopify Inc SHOP is set to release its fourth-quarter earnings report on Tuesday. Analysts predict earnings per share (EPS) of 43 cents and revenues of $2.73 billion. This announcement will come before market hours.
Over the last year, Shopify’s stock has risen by 36.11%, with a year-to-date increase of 12.81%.
Let’s explore the current trends for Shopify’s stock and how it aligns with Wall Street’s expectations.
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Shopify’s Stock Shows Strength Ahead of Q4 Earnings
Shopify’s share price is currently trading above its five-day, 20-day, and 50-day exponential moving averages, indicating strong upward momentum. However, the stock is experiencing mild selling pressure at this time.
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The stock is currently priced at $121.34, comfortably above the short-term eight-day simple moving average (SMA) of $118.58. Longer-term indicators also reflect positive trends, with Shopify’s stock well above its 20-day ($111.55), 50-day ($111.58), and 200-day ($82.34) SMAs.
The Moving Average Convergence Divergence (MACD) stands at 3.35, reinforcing the positive outlook by indicating substantial momentum.
Additionally, Shopify’s Relative Strength Index (RSI) is currently at 62.87, suggesting that there is still potential for further gains before reaching overbought conditions.
Investors should remain attentive to whether the current selling pressure develops into a consolidation phase, or if the bullish momentum can propel the stock to new heights.
Analysts Predict Limited Upside for Shopify
Ratings & Consensus Estimates: The overall consensus among analysts is a Buy for Shopify stock, with a price target hovering around $98.44. Recent ratings from RBC Capital, Wedbush, and JMP Securities set a target at $125, projecting a modest 3.43% upside.
Current Price Action: As of this report, Shopify shares are trading at $121.
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