WallStreetZenWallStreetZen

How to Buy Shopify Stock

Shopify Inc

Shopify is a app company located in Ontario, Canada, which is part of the Technology sector, and is traded under the ticker SHOP on the NYSE exchange.

Shopify stock last closed at $75.77, down 1.07% from the previous day, and has increased 74.26% in one year. It has overperformed other stocks in the Software - Application industry by 0.46 percentage points. Shopify stock is currently +90.42% from its 52-week low of $39.79, and -17.25% from its 52-week high of $91.57.

At the moment, there are 1.29B shares of SHOP outstanding. The market cap of SHOP is $97.48B. In the past 24 hours, 7.29M SHOP shares were traded.

How to Buy Shopify Stock

Not sure how to invest in Shopify stock? Here's how.
  1. Choose where to buy Shopify stock: You need to decide on a stock brokerage, but don't worry - we've analyzed dozens of stock brokerages and apps to help you figure out where to buy Shopify stock.
  2. Sign up for your brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've identified.
  3. Deposit money your investment account: Pick your payment method and add your information.
  4. Research Shopify stock: The Shopify ticker symbol is SHOP. Is Shopify stock a good investment? Should you buy shares of SHOP? How do SHOP's underlying business fundamentals look? Do top analysts think Shopify is a good buy? Why has SHOP's stock price moved recently? (Hint: Our stock market analysis tools can help you figure out if SHOP is a good stock to buy).
  5. Make your SHOP purchase: Decide if you will purchase SHOP shares at the current market price or use a limit order to buy SHOP shares at a given price.
  6. Keep tabs on your SHOP investment: Create a watchlist to monitor your new investment in Shopify stock.

Step 1: Choose where to buy Shopify stock

You need an online brokerage account in order to access the NYSE market and buy SHOP shares.

A brokerage account is an investment account that allows you to buy and sell a number of investments, such as stocks, bonds, mutual funds, and ETFs.

Our preferred brokerage: eToro

Based on our experience, eToro is the best stock brokerage. eToro gives you:

  • You can invest in stocks with zero commissions: Invest without commissions.
  • Buy fractional shares: Even if you don't have the money to buy a full share, you can still buy the stock.
  • Access to global markets: From Tech to Industrials, New York to Shanghai — you can fill your portfolio with stocks from the globe's leading stock exchanges.
  • Social investing: eToro boasts a community with more than 20 million users around the world. Talk to, learn from, and copy the crypto trades of top investors.
  • Security: eToro is a regulated and licensed fintech leader.
  • Buy other assets: Such as ETFs and cryptos.

Get $10 towards your share purchase by signing up for an account with eToro today.

Open eToro Account
eToro securities trading is offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. https://www.wallstreetzen.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.

Step 2: Sign up for your brokerage account

Now that you've selected the right brokerage, you'll need to fill out some personal details so you are able to invest in SHOP today.

How to Open a New Account on eToro

  1. Click here to get started.
    eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
  2. Enter your personal data to create your new trading account.
  1. Submit your information by pressing the "Create Account" button.
  2. Get started with eToro today
    eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Step 3: Deposit money your investment account

Now that you've created your account on the best free stock trading app, you can securely and quickly fund your account:

Check out the walkthrough below for more details depositing funds into your new brokerage account.

Get started with eToro today
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Step 4: Research Shopify stock

Once you have selected the best place to buy Shopify stock, it's crucial to research their stock before you invest, so you truly wrap your head around the risk and upside.

Shopify shares at a glance

SHOP Price
$75.77
1w %
-2.31%
1y %
74.26%
5y %
306.34%
P/E
757.7x
P/B
10.75x
P/S
13.75x
PEG
6.87x
Revenue
$7.06B
Earnings
$132.00M
Fore. Rev. Growth
19.95%
Fore. Earn. Growth
110.29%
Market Cap
$97.48B
Next Earnings
May 2, 2024
Next Dividend
N/A

Fundamentals of Shopify

WallStreetZen was created to help average investors perform better fundamental analysis.

You can see all of the due diligence checks on SHOP's stock page.

Is SHOP stock overvalued?

Investors use a variety of different financial metrics, analyses, models, and charts to gauge SHOP's fair value.

Using relative valuations ratios:

  • SHOP may be overvalued based on its P/E ratio of 757.7x, relative to Software - Application industry P/E ratio of 136.91x
  • SHOP may be overvalued based on its P/B ratio of 10.75x, relative to Software - Application industry P/B ratio of 7.05x
  • SHOP could be overvalued based on its PEG ratio of 6.87x

You can do more valuation research on SHOP's stock here.

Is SHOP a healthy company?

Signs that SHOP is financially healthy:

  • There are more short-term assets than long-term liabilities on the SHOP balance sheet.
  • SHOP has a low debt to equity ratio of 0.25.
  • There are more short-term assets than short-term liabilities on the SHOP balance sheet.
  • SHOP's operating cash flow of $944.00M allows it to safely service it's debt of $1.15B.
  • SHOP earnings of $185.00M is not enough to cover its interest payments.
  • SHOP profit margin has gone up from -61.8% to 1.9% in the past year.

Signs that SHOP is not financially healthy:

  • Total SHOP debt is higher than 5 years ago, relative to shareholder equity.

Is Shopify stock a Buy, Hold, or Sell, according to analysts?

Out of 14 Equities analysts who give ratings on SHOP, the consensus analyst rating on SHOP is a Hold

Please note that analyst forecasts are not recommendations, nor are they investment advice.

Most Recent SHOP Analyst Recommendations

Paul Treiber, a bottom 37% analyst from RBC Capital reiterates SHOP with a buy rating and maintains their SHOP price target from $100.00 to $100.00, on Feb 14, 2024.

Clarke Jeffries, a top 20% analyst from Piper Sandler maintains SHOP with a strong sell rating and raises their SHOP price target from $56.00 to $63.00, on Feb 14, 2024.

Piper Sandler's Clarke Jeffries raised their price target on Shopify (NYSE: SHOP) by 12.5% from $56 to $63 on 2024/02/14. The analyst maintained their Strong Sell rating on the stock.

The analyst made their price target move on Shopify after seeing the company's Q4 and FY 2023 earnings, reported on 2024/02/13.

Jeffries said they increased their price target because "Shopify delivered strong Q4 results with 3% revenue upside and 4% GMV (Gross Merchandise Volume) upside."

Earnings Report

Shopify reported:

For Q4 2023:

EPS of $0.34, which beat the Zacks Consensus Estimate by 9.68% and, by 385.7%, Q4 2022's $0.07.

Revenue of $2.144B, which beat the Zacks Consensus Estimate by 3.66% and FY 2022's $1.735B by 23.6%.

GMV (Gross Merchandise Volume) of $75.1B, up 23% from Q4 2022's $60.9B.

For FY 2023:

  • EPS of $0.73, up 985.7% from FY 2022's $0.04.
  • Revenue of $7.06B, up 26.1% from FY 2022's $5.6B.
  • GMV of $235.9B, up 20% from FY 2022's $197.2B.

For Q1 2024, management guided:

  • Revenue up in the low twenties (percent) Y/Y.
  • Adjusting for a 500 bps to 600 bps headwind related to the divestiture of the logistics business, revenue up in the mid to high twenties (percent) Y/Y.
  • Gross margin up 150 bps sequentially.
  •  Free cash flow up in the high single digits (percent), with sequential improvement every quarter of the year
  • Opex up in the low teens (percent) sequentially.

President Harley Finkelstein commented: “2023 was an incredible year for both Shopify and our merchants.

"Our strong Q4 and annual results are a powerful testament to the progress we have made building fast, reliable, and unified software for merchants of all sizes.

“As we look ahead to 2024, our focus remains on driving innovation in an ever-evolving commerce landscape, delivering products that will propel our merchants’ businesses forward, with the support of our world-class talent and our valued merchants and partners.”

“Our GMV growth accelerated in Q4 and for all of 2023, which powered Shopify’s strong financial results.

CFO Jeff Hoffmeister added: "In Q4 we delivered Y/Y revenue growth of 24%, which represents 30% growth when adjusting for the sale of our logistics businesses, and achieved an operating income margin of 13% and a free cash flow margin of 21%.

“For 2024, we look to build on the momentum that we achieved in 2023 and continue to deliver a strong combination of both top-line growth and profitability.”

Axel Herlinghaus, a top 50% analyst from DZ Bank downgrades SHOP to a strong sell rating and announces their SHOP price target of $65.00, on Dec 12, 2023.

Bhavin Shah, a bottom 9% analyst from Deutsche Bank maintains SHOP with a strong buy rating and raises their SHOP price target from $75.00 to $85.00, on Dec 6, 2023.

Keith Weiss, a top 2% analyst from Morgan Stanley maintains SHOP with a hold rating and raises their SHOP price target from $62.00 to $74.00, on Dec 4, 2023.

You can dive deeper into what analysts are forecasting on the Shopify stock forecast page.

Metrics for Advanced SHOP Traders

SMA10
76.4
SMA20
80.15
SMA50
79.38
SMA100
71.33
SMA200
65.89
MACD
-1.23
MACD Signal
-0.61
MACD Histogram
-0.63
RSI
43.92
Stochastic %K
16.17
Stochastic %D
14.16
StochRSI %K
13.78
StochRSI %D
10.78

SHOP Growth Metrics

Last year, SHOP earnings were $132.00M. In the last 3 year, SHOP's earnings have increased by -85.52% per year. This was slower than the Software - Application industry average of 12.28%.

Last year, SHOP revenue was $7.06B. Over the last five year, SHOP's revenue has increased by 45.75% per year. This was faster than the Software - Application industry average of 29.81%.

You can research SHOP's earnings and revenue performance here.

Who is buying/selling SHOP?

Over the last 12 months, insiders at SHOP have not bought or sold any shares.

Get more info about who owns SHOP shares here.

Does SHOP stock generate passive income?

No, Shopify doesn't provide an income stream by paying out dividends.

SHOP Social Trading Data

One of the reasons eToro is our top-rated brokerage is because of its social trading community.

Click below to see what other traders have to say.

Step 5: Make your SHOP purchase

There are two main order types:

  • Market order: A market order is an order to buy or sell a stock at the best possible price.
    Market orders are usually the best for newer investors.
  • Limit order: A limit order allows you to buy or sell a stock at a specific price (or better).
    If you want to make sure you're buying or selling at a particular dollar amount, use a limit order.

Hit the Open Trade button and your broker will place your order.

If you need more info about investing in stocks on eToro, click the how to video below:

Open eToro Account

Step 6: Keep tabs on your SHOP investment

Now that you own some shares in SHOP, you'll want to stay up-to-date on your stock purchase.

Add SHOP to a watchlist to get the latest updates about your SHOP stock.

SHOP Feed

How to Buy Stock in Shopify

To summarize, here are the 6 steps you need to take to buy Shopify stock right now:

  1. Choose where to buy Shopify stock
  2. Sign up for your brokerage account
  3. Deposit money your investment account
  4. Research Shopify stock
  5. Make your SHOP purchase
  6. Keep tabs on your SHOP investment

If you need a online brokerage, eToro is our favorite venue.

Get Started with eToro Today
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

If you want to keep track of your investment in Shopify, click below.

NYSE: SHOP
$75.77-0.82 (-1.07%)
Updated Mar 4, 2024
Open eToro Account
NYSE: SHOP
$75.77-0.82 (-1.07%)
Updated Mar 4, 2024
Open eToro Account

FAQ

How much does it cost to buy one Shopify share?

As of Mar 4, 2024, it costs $75.77 to buy one share of Shopify stock.

Remember, eToro's fractional share buying allows you to buy partial shares of stocks and ETFs. Even if you only have $10, you can buy 0.132 shares of SHOP.

Get Started with eToro Today
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Is now a good time to buy Shopify stock?

According to 14 Wall Street analysts who monitor Shopify, their consensus recommendation is to hold Shopify stock.

What is the best way to buy Shopify stock?

One way to place an order for Shopify stock is with a brokerage account.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.