Stock is up almost 200% from its October 2022 lows. Do you think, it's mostly short covering or company has strong fundamentals for the stock to regain its highs of $200, in due course ?
Why, in your view, are so many US analysts, lukewarm on Shopify ?
Thank You
SHOP has 22 BUYS, 26 HOLDS and 3 SELLS from the analyst community. SHOP did fall 80% from its peak, and US analysts have a long memory. As a Canadian company, it is likely not a real focus for many US-based players. SHOP has also flip-flopped a bit on strategy (likely for the better) and analysts can be cautious when this happens. SHOP currently has a low short interest (about 3% total for both markets) and the short interest is down about 50% in the past year. But fundamental investors are buying as well, as the company focuses more of profitability. Could SHOP double from here? With good earnings and a good market backdrop, we think it could. We would not 'expect' that in the near term but over time we do not see why not. The online market continues to grow and SHOP is becoming a 'go to' solution for many merchants. It is now working together with AMZN (in some aspects) as opposed to competing directly.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in AMZN.