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Shopifyshort

Despite positive earnings, $shop still going to new lows.The earnings reaction was positive today which saw shares of shop go up over 20%, however we're already fading the news. The big picture is that we're in the process of a larger market wide correction that will bring all stocks down with it. If we look at the chart, even with the news today, price has just formed another lower high and is setting up for a large move lower. I don't think we'll see a bottom be put into the market until we test $31 or lower. Base case is we likely hit the two lower supports on the chart. Let's see what happens in the coming weeks.
SShort
by benjihyam
1
Shopify Surges 22% on Strong Q2 Earnings and Upbeat ForecastShopify Inc. (NYSE: NYSE:SHOP ) experienced a remarkable 22% surge in its stock price following its second-quarter earnings report, which significantly exceeded Wall Street expectations. The Canadian e-commerce giant showcased impressive growth in key financial metrics, despite a challenging consumer spending environment. Financial Highlights - Earnings per Share (EPS): 26 cents, surpassing the 20 cents expected - Revenue: $2.05 billion, beating forecasts of $2.01 billion - Gross Merchandise Volume (GMV): Rose by 22% to $67.2 billion, outpacing the $65.8 billion consensus estimate Shopify’s success is attributed to its robust demand for services that support online merchants, including software solutions, advertising, and payment processing tools. The company's ability to navigate a mixed consumer spending landscape underscores its strong market position. Strong Performance Amid Consumer Caution Despite a cautious consumer spending environment, reflected in recent earnings reports from e-commerce rivals like Amazon, Etsy, and Wayfair, Shopify reported solid growth. The company’s GMV soared 22%, highlighting its ability to capture market share even as broader economic conditions impact consumer behavior. Jeff Hoffmeister, Shopify’s CFO, remarked that the company continued to gain market share, driven by its diverse clientele and robust platform. “Our merchants are outperforming and doing better than others,” stated Shopify President Harley Finkelstein, emphasizing the benefits of the company's broad and varied merchant base. Key Metrics and Achievements - Merchant Solutions Revenue: Increased by 19% to $1.5 billion, driven by GMV growth and Shopify Payments adoption - Subscription Solutions Revenue: Grew by 27% to $563 million, bolstered by a rise in merchant numbers and pricing increases - Gross Profit: Up 25% to $1.0 billion, with a gross margin of 51.1% - Free Cash Flow: Increased to $333 million, compared to $97 million in the same quarter last year - Monthly Recurring Revenue (MRR): Rose 25% to $169 million, with Shopify Plus contributing 31% Positive Outlook for Q3 2024 Shopify (NYSE: NYSE:SHOP ) provided an optimistic forecast for the third quarter. The company expects revenue growth in the low-to-mid-20s percentage range year-over-year and anticipates a slight increase in gross margin. Additionally, Shopify projects a free cash flow margin similar to Q2 2024 and expects to maintain a double-digit free cash flow margin for the remainder of the year. Shopify’s impressive performance amidst a mixed consumer spend environment highlights its strategic positioning as a leader in e-commerce solutions. By focusing on diversified merchant needs and enhancing its platform's capabilities, Shopify continues to strengthen its role in global commerce. Industry Context The company’s success contrasts with challenges faced by other e-commerce players, who have reported cautious consumer spending. Shopify’s ability to thrive despite these headwinds showcases its resilience and strategic advantage in the e-commerce sector. Technical Outlook As of the current time, Shopify stock (NYSE: NYSE:SHOP ) has experienced a notable increase of 22.3%. This significant surge is supported by a bullish Relative Strength Index (RSI) of 58, indicating the likelihood of further price escalation. Additionally, the daily price chart presents a distinct upward gap, suggesting that market dynamics may lead to this gap being filled in subsequent trading sessions. In summary, Shopify's strong quarterly results and positive outlook reflect a company that is not only weathering economic uncertainties but also thriving in a competitive market. As it continues to expand its offerings and drive growth, Shopify remains a standout player in the e-commerce landscape.
SLong
by DEXWireNews
Shopify Short term Sell Target Off Major Support BounceHI guys, ive been following Shopify (SHOP), since its test of some important SUPPORT. This is a quick update from my previous idea. (Which you can find down below for more context) We've currently bounced extremely bullish off the SUPPORT level, heading towards a SUpport turned Resistance line associated with the UPTREND channel i identified. Normally when we break down or break above trend lines, that we have respected for some time. We tend to retrace back to that same line to Re-Test it. Such is the case for Shopify. Watch the Volume, an INCREASE/ SPIKE in Volume is absolutely needed to get back ABOVE, resuming our UPTREND. But due note: we are heading into Labor day weekend, thus RISK of LOW VOLUME. I would then consider if you were able to take positions from the SUPPORT level bounce To think about off loading some of your position here. If we do get back into the UPTREND channel from my previous POST. We can look to take new positions if SUPPORT is CONFIRMED. __________________________________________________________________________________ Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again. Stay tuned for more updates on SHOP in the near future. If you have any questions, do reach out. Thank you again. DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy
SShort
by SafofAllTrades
2
Shopify Corrective Move and Potential TargetsHi guys! This is a Technical Analysis on Shopify (SHOP) on the 1 Week Timeframe. Since its not the end of the Week, we have to wait till the end of week to see how this week's candle closes. We ATTEMPTED to break ->1. The ORANGE resistance zone above the 1 FIB level ->2. The "MAJOR RESISTANCE" labeled line that represents a RESISTANCE trend that formed from the PRICE TOP. WE WERE REJECTED after trying for 4 weeks (july 10th to August 7th). The 4th weeks candle closed as an ENGULFING BEARISH candle. Note: For price to break any trend line, it requires a minimum of atleast 3 major tests This current one in my opinion, ONLY MAKES 2 touch points. This strengthens the reason of why we got rejected. So far this weeks candle is showing a much SMALLER body than previous weeks. This can be an indication that perhaps SELLING is slowing down. But come end of week, the CURRENT BODY cannot close larger than Today August 9th Candle. We are currently: -> BELOW the 21 EMA -> Breaking the RED Channel i drew out -> 0.786 FIB Level Heading straight to the SUPPORT zone comprising of: 1. SUPPORT Horizontal black line 2. 0.618 FIB Level 3. The base of the DESCENDING Triangle. ***Being a confluence of 3 SUPPORT levels -> I believe us to attempt a bounce from the $53.00 area, maybe to retest the "MAJOR RESISTANCE" trendline In my opinion, its important that we can somehow get back above these key levels come end of week. If we cant, probabilities are pointing towards a small corrective move Especially the 21 EMA, looking left reveals patterns where price can fall for upto couple weeks to even couple months. Which can even validate or increase the probability of the descending triangle to play out If that happens we will test: 1. First, the 0.5 FIB level at $47.44 2. Then the 0.382 FIB level, which is also around a intermediate Resistance turned SUPPORT line. 3. Worst case scenario = Range of 0.236 FIB level at $34.91 to about $23.90 ----->*****going any lower would invalidate the current MACRO BULLISH trend**** -----> But going this low can have create some bullish patterns like a double bottom. But overall its just as of now, less probable. But we have to just focus one step at a time, worrying about a target level, if the previous trend is broken and confirmed. Ex). -> If we break below the 0.5 FIB level and confirm, only then is the 0.382 FIB lvl likely. The STOCH RSI is showing BEARISH move down to the 20 level, we can continue to move below the 20 level and even stay down here for weeks to couple months. But the longer we stay at low levels especially those below 20 level, price tends to decline further. So we need to pay attention to the level it ends up at. The RSI is testing a SUPPORT zone, below it can indicate further price drop. Also notice that the RSI line is below the BLACK moving average. If you look left, if we are below it for extended periods RSI continues to drop, along with price. Keep this in mind. Lastly, the ADX GREEN line, is on a decline, getting close to meeting with RED line. If a cross occurs, more BEARISH momentum can enter the stock. This could increase the probably that the correction continues for a longer timeframe. We would need GREEN line to curve up and try to get ABOVE resistance line. Stay tuned for more updates on SHOP in the near future. Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again. If you have any questions, do reach out. Thank you again. DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. When trading always spend majority of your time on risk management strategy.
SShort
by SafofAllTrades
Shopify dancing in a range.Shopify - Intraday - We look to Sell at 39.88 (stop at 43.43) The primary trend remains bearish. Price action continued to range between key support & resistance (30.00 - 40.00) and we expect this to continue. Bespoke resistance is located at 40.00. Resistance could prove difficult to breakdown. We look for a temporary move higher. Our profit targets will be 30.61 and 28.61 Resistance: 33.00 / 35.00 / 40.00 Support: 30.00 / 28.00 / 26.38 Daily chart for context Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features. Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
SShort
by Saxo
SHOPIFY Bottom PotentialAn upward channel can be drawn from a strong trend line point on SHOPIFY It provides a chart like this, showing a clear top, and also a potential bottom that aligns with the 4.618 fib An attempted support can be seen to have formed at 2.618 (yellow) This leaves 4.618 as a bottom point, which has also been seen as a bottom in the past (green) Two bullish chart patterns can be seen on chart along with one bearish Ascending and Descending wedge both acting bullishly Followed by a Double top, considered a bearish pattern
S
by Bixley
2
Was the SHOP sell-off predictable?Of course it was! It reached both of my price targets: And now i think it will go even lower. My experience as a seller on 2 Shopify stores was terrible in the past 4 months. I had a decrease in sales of more than 60%. My friends with on-line store had the same experience. So if the merchants don`t make money, neither do Shopify. It`s hard to believe they will come up with a good quarter. My buy area is lower than $400. Looking forward to read your opinion about it.
SShort
by TopgOptions
2