Just a few days ago, we were talking about the excellent earnings results from Amazon, Alibaba, and eBay, and yesterday we learned about Shopify results. Again, these also came in better than expected, giving us another good sign of the strength of the e-commerce sector thanks to the Covid-19 pandemic.
Shopify is a Canadian, Ottawa-based company which provides a cloud-based, multichannel commerce platform, primarily focused on small and medium-sized businesses. The businesses are offered the ability to run their shops through all their sales channels, creating not only the possibility of place orders and payments through mobile devices, but also to enhance business relationships with customers.
In its results, we note that the earnings increase per share is $1.58, with total earnings of $977.74 million, versus the expected $1.22 per share increase and earnings of $913.13 million. Currently, the stock is trading around $1,425 per share, so if we analyze it from its earnings per share, we obtain a PER greater than 898, so the net profit is 898 times the share price. This may indicate that shareholders are willing to pay more per share as they expect the company to continue to grow significantly in the future.
Technically speaking, the uptrend in recent months has been clear in this stock and after overcoming the important lateral channel delimited by the green and red bands, the share price has experienced a new upward momentum that has led it to exceed 1,400 dollars per share reached almost all-time high after all-time high.
Currently, it is trading far from its main support levels and we can observe an overbought in its stochastic indicator, although after these good results this action may find a new momentum, so any retracement to its support levels can be seen as a good opportunity for some investors, since as long as it does not lose its main support levels (the trend line, an average of 200, and lower band of the channel in red) the feeling will continue to be bullish.
Source: Admiral Markets MetaTrader 5. Shopify daily chart. Data range: from October 23, 2019 to February 18, 2021. Prepared on February 18, 2021 at 12:40 p.m. CET. Keep in mind that past returns do not guarantee future returns.
Price evolution in the last 5 years:
- 2020: 184.71%
- 2019: 187.17%
- 2018: 37.08%
- 2017: 135.60%
- 2016: 66.16%
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