Automated Trading AI Boasts +19.98% Profits in $SHOP Performance
One such AI trading bot, known as "Swing Trader: Deep Trend Analysis (TA)," has recently been making waves by generating a remarkable 19.98% gain while trading Shopify (SHOP) over the course of the previous week. In this article, we will delve into the dynamics of the Packaged Software Industry, particularly focusing on SHOP, and discuss the latest earnings report and key market indicators.
The Packaged Software Industry:
Packaged software refers to multiple software programs bundled together and sold as a group, offering a cost-effective alternative to purchasing individual software applications. Notable American packaged software makers in this industry include Microsoft Corporation, Oracle Corp., and Adobe. These industry giants are known for their wide range of software products, such as Microsoft Office, which includes applications like Excel, Word, and PowerPoint.
Positive Momentum for SHOP:
One key indicator suggesting a potential upward trend for SHOP is its Momentum Indicator. On November 02, 2023, the Momentum Indicator for SHOP moved above the 0 level, signaling the possibility of a new upward move. Traders are now eyeing this development as an opportunity to buy SHOP stock or call options. Tickeron's A.I.dvisor conducted an analysis of 82 similar instances where the Momentum Indicator turned positive. In 73 out of these 82 cases, the stock moved higher in the following days, presenting a compelling 89% probability of a positive move.
Impressive Earnings Results:
In addition to the positive momentum indicator, SHOP reported impressive earnings results on November 02, 2023. The earnings per share (EPS) came in at 23 cents, surpassing the estimated 14 cents. With 13.06 million shares outstanding, the current market capitalization of SHOP stands at a substantial 78.94 billion dollars. This strong earnings report has undoubtedly contributed to the positive sentiment surrounding the stock.
Market Capitalization Insights:
Comparing SHOP's market capitalization to its peers in the Packaged Software Industry, we find that the average market capitalization across the industry is approximately 8.53 billion dollars. Market caps within this industry range from as low as 291 million dollars to a staggering 2.65 trillion dollars. Microsoft Corporation (MSFT) boasts the highest valuation at 2.65 trillion dollars, while the lowest valued company in the industry is BLGI, with a market cap of 291 million dollars.
Price Movements:
Analyzing price movements within the Packaged Software Industry, we discover that the average weekly price growth across all stocks in the industry was approximately 4%. However, the average monthly price growth dipped to -3%, and the average quarterly price growth experienced a more significant decline, reaching -6%. Within this spectrum, VSBGD demonstrated the highest price growth at a remarkable 698%, while CAUD experienced the most substantial fall at -80%.
Volume Insights:
The volume of trading activity is another crucial aspect of the stock market. For the Packaged Software Industry, the average weekly volume growth across all stocks stood at 50%, whereas the average monthly volume growth was 31%. However, the average quarterly volume growth showed a decline of -6%. These volume statistics offer insights into the level of interest and activity within the industry.
Summary:
The utilization of AI trading robots, such as "Swing Trader: Deep Trend Analysis (TA)," has become a noteworthy trend in the stock market, as demonstrated by the impressive gains achieved while trading SHOP. With a positive Momentum Indicator and strong earnings results, Shopify is positioning itself for potential growth in the Packaged Software Industry.
SHOP sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for SHOP moved above the 200-day moving average on October 07, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SHOP advanced for three days, in of 332 cases, the price rose further within the following month. The odds of a continued upward trend are .
SHOP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 268 cases where SHOP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SHOP moved out of overbought territory on September 27, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on October 22, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SHOP as a result. In of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SHOP turned negative on October 15, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SHOP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SHOP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (11.099) is normal, around the industry mean (30.698). P/E Ratio (781.900) is within average values for comparable stocks, (161.895). Projected Growth (PEG Ratio) (1.291) is also within normal values, averaging (2.738). Dividend Yield (0.000) settles around the average of (0.083) among similar stocks. P/S Ratio (14.347) is also within normal values, averaging (55.771).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an operator of eCommerce website that allows customers to sell online by providing software to create an online store
Industry PackagedSoftware