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Shopify - AI Stock Analysis
Analysis generated October 20, 2025
Shopify Inc. is a leading e-commerce platform, providing tools for businesses of all sizes to create and manage online stores. Founded in 2006 and headquartered in Ottawa, Canada, Shopify has established itself as a dominant player in the e-commerce industry. In addition to online store services, Shopify also offers payment processing, marketing tools, and shipping solutions, thereby creating a comprehensive ecosystem for digital commerce. With over 1 million customers across 175 countries, the company’s reach and influence continue to grow.
Fundamental Analysis
Shopify reported revenue of $2.68 billion for the last quarter. This represents an increase of 13.56% compared to the previous quarter, signaling a positive trend in short-term growth. Remarkably, compared to the same quarter last year, revenue has surged by 31.05%, indicating robust year-over-year growth.
The net income for the last quarter was $906 million, a significant rise of 232.84% compared to the preceding quarter. Year-over-year, the net income increased by an impressive 429.82%, underlining the company's efficient cost management and profitability.
EBITDA for the most recent quarter was $1.09 billion, illustrating a quarter-over-quarter increase of 415.17%. Compared to the same quarter from the previous year, EBITDA grew by 333.07%, further underscoring Shopify’s excellent profit margins.
However, the current Price to Earnings (P/E) ratio stands at 87.64. This high P/E ratio could indicate potential overvaluation, serving as a bearish signal for some investors wary of paying a premium for future growth.
Technical Analysis
Shopify’s stock price currently stands at $164.71. This marks an increase of 7.44% compared to a month ago, showcasing a positive short-term trend. Year-over-year, the stock has appreciated by 99.26%, indicating a strong long-term uptrend. The overall trend is bullish.
The current Simple Moving Average over 10 days (SMA10) is 155.94, higher than the previous SMA10 of 154.57. This suggests potential upward momentum in stock price movement. Additionally, the Relative Strength Index (RSI) is at 26, suggesting that the stock is potentially oversold and could be in a bullish condition for investors looking for technical entry points.
Alternative Data Analysis
Job postings and employee sentiment are valuable indicators of a company’s growth prospects. Shopify currently has 74 open positions, a 37% increase over the last couple of months, signaling the company’s intent to expand. Employee sentiment, however, remains neutral.
Customer acquisition metrics also paint a favorable picture. Shopify’s website attracts an estimate of 228 million visitors, representing a 13% increase in recent months, which indicates a growing customer base. Additionally, the company sees around 17,000 daily downloads of its mobile apps, a stable metric that points to consistent user engagement.
In terms of social media presence, Shopify has 1.9 million Instagram followers, up by 8% over the last few months. The company's Twitter account has 440,000 followers with no significant change recently. Increased social media engagement suggests heightened interest in the brand.
According to AltIndex’s AI score, which combines fundamental, technical, and alternative data analysis, Shopify has an AI score of 58, indicating a hold signal.
Conclusion & Recommendation
Shopify is clearly in a phase of significant growth and expansion, as evidenced by its impressive revenue, net income, and EBITDA increases. While its high P/E ratio raises concerns about potential overvaluation, the bullish technical indicators and positive trends in alternative data analyses present a compelling case for continued growth.
Given these insights, it may be advisable to hold Shopify stock and monitor for future performance metrics and market conditions, which could provide more clarity and potentially more robust entry points for new investments.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
