2023 is so far providing a platform for turnaround stories. Shopify (NYSE:SHOP) appears to be one such name benefiting from a change in sentiment; the shares are already up by 44% year-to-date, with 24% of those gains delivered in this week’s trading.
Investors were evidently happy with the e-commerce giant’s latest move, with the surge coming off the back of changes to its monthly pricing plans. These affect Basic, Shopify, and Advanced plans, with all rising by roughly 33-34%.
The basic plan will now cost $39, up from $29, the Shopify plan will increase from $79 to $105, and the Advanced plan will cost $399 vs. $299 beforehand.
The company justified the hikes by noting the pricing plans have hardly changed over the last 12 years. New merchants will pay for the updated plans immediately, while for existing merchants, the new prices will go into effect by late April.
Taking into account a “relatively small incremental churn,” with a total take rate of ~3% compared to 2.9% before,…
2023-01-27 20:51:00 Shopify Stock Is up Over 40% This Year. How Much Higher Can It Go?
Link from finance.yahoo.com The major e-commerce provider, Shopify Inc, has enjoyed an exceptional 2020. Its stock price has increased by an incredible 40.2% on the year, leaving investors wondering how much higher it can go.
With a market cap of $138.19 billion and a price to earnings ratio of 102.7 times, Shopify Inc is one of the most valuable public cloud-based software companies in the market.
In the midst of a pandemic-stricken global economy, Shopify’s services have provided relief to store owners across the world.
Shopify offers businesses a comprehensive solution to facilitate their physical and online presence. It grants businesses access to Merchant Solutions, which allows them to accept payments, manage inventory, and track orders, along with a range of other benefits.
Other services – like Shopify Financials, Shopify Shipping, and Shopify Payment – make it easy for businesses to create a full online retail experience.
The online shopping boom that has accompanied the global pandemic has driven an increase in demand for these services, with the company’s total revenue increasing 76% year-on-year in the most recent quarter.
What this means for investors is that Shopify’s stock price should continue to rise in the months to come.
As vaccination efforts increase across the world and the world gradually reopens, we may see a resurgence in demand for Shopify’s services. This will probably give the stock price a further boost.
One thing is for sure, the Shopify stock is a safe bet for investors looking for potentially lucrative returns. With an already impressive increase in 2020, its stock price could soar even higher in 2021 – and beyond.
