$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's Indicator enters downward trend
The Aroon Indicator for SHOP entered a downward trend on April 07, 2025. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 175 similar instances where the Aroon Indicator formed such a pattern. In of the 175 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 57 cases where SHOP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 08, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on SHOP as a result. In of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
SHOP moved below its 50-day moving average on May 06, 2025 date and that indicates a change from an upward trend to a downward trend.
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 .
SHOP broke above its upper Bollinger Band on April 24, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where SHOP's RSI Indicator exited the oversold zone, of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SHOP just turned positive on April 17, 2025. Looking at past instances where SHOP's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for SHOP crossed bullishly above the 50-day moving average on May 06, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SHOP advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued 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 outstanding 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.
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 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SHOP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly 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 (30.917). P/E Ratio (781.900) is within average values for comparable stocks, (160.020). Projected Growth (PEG Ratio) (1.291) is also within normal values, averaging (2.714). Dividend Yield (0.000) settles around the average of (0.029) among similar stocks. P/S Ratio (14.347) is also within normal values, averaging (59.831).
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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