$SHOP Stock Prosperity: +4.52% Boost from Trader Robot
Enter the AI trading robots, accessible through "Swing trader: Deep Trend Analysis (TA)" – these bots have proven to be veritable bot factories, generating an impressive +4.52% gain while trading Shopify (SHOP) over the course of the previous week. In this article, we'll delve into the recent earnings results of SHOP and analyze the trend signals that could influence your trading decisions.
Trend Analysis:
SHOP, a well-known e-commerce giant, is currently experiencing a downward trend as the 10-day moving average crossed below the 50-day moving average on September 21, 2023. This cross indicates a bearish shift in the trend, potentially signaling a good time to consider selling. However, historical data shows that in 11 out of 13 past instances when the 10-day moving average crossed below the 50-day, the stock continued to move higher over the following month, indicating a possible upward move. Nevertheless, the odds of a continued downward trend are estimated at 85%.
Earnings Report:
The last earnings report for SHOP, released on August 2, showed earnings per share of 14 cents, surpassing the estimate of 7 cents. With 7.23 million shares outstanding, the current market capitalization stands at an impressive 67.15 billion USD. This solid earnings performance has undoubtedly caught the attention of investors.
Market Capitalization:
To put SHOP's market capitalization into perspective, it's essential to consider the industry average. The average market capitalization across the Packaged Software Industry is approximately 8.2 billion USD. However, it's worth noting that market cap values within this industry range significantly, from as low as 291 million USD (as seen in BLGI) to a staggering 2.46 trillion USD, which Microsoft (MSFT) currently holds. These numbers underline the scale and diversity of companies within the industry.
Price Movements:
Understanding price movements is crucial in evaluating a stock's performance. In the Packaged Software Industry, the average weekly price growth across all stocks was -1%, indicating a generally bearish trend over the short term. The average monthly price growth was even more negative at -4%, highlighting a challenging period for the industry. However, it's important to note that outliers exist, with IQAIF experiencing the highest price growth at 119% and VYND taking the biggest hit with a decline of -92%. These significant deviations show that there are opportunities for both gains and losses within the industry.
Volume Analysis:
Trading volume is another key metric to consider. On average, the Packaged Software Industry experienced a 7% increase in weekly trading volume. The monthly and quarterly figures were more optimistic, with an average growth of 32% and 4%, respectively. These numbers suggest that despite the challenging price movements, investors are actively participating in the market.
Summary:
In a volatile market environment, AI trading bots like those accessible through "Swing trader: Deep Trend Analysis (TA)" have demonstrated their ability to generate positive gains, as seen in SHOP's recent performance. While SHOP's trend signals may be pointing downward, historical data suggests a possible upward move. Additionally, solid earnings and a substantial market capitalization make SHOP an intriguing choice in the Packaged Software Industry.
However, it's essential to remember that market conditions are constantly evolving, and outliers like IQAIF and VYND serve as a reminder that opportunities and risks are ever-present. Volume analysis further highlights the industry's resilience.
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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General Information
an operator of eCommerce website that allows customers to sell online by providing software to create an online store
Industry PackagedSoftware