On Monday, e-commerce company Shopify announced that it is acquiring warehouse automation startup 6 River Systems for $450 million.
Through the 60% cash and 40% stock deal, Shopify expects to expand its warehouse & deliveries capabilities – thanks to 6 River Systems’ expertise in fulfilment/cloud-based software and robotics solutions. 6 River Systems is well-known for its “Chuck” autonomous vehicles that can move around packages in the warehouse.
Shopify indicated that the acquisition will improve delivery times and lower costs. It has recently launched a new fulfillment service that packs and ships products for sellers for additional charges.
SHOP broke above its upper Bollinger Band on March 20, 2024. 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. The A.I.dvisor looked at 51 similar instances where the stock broke above the upper band. In of the 51 cases the stock fell afterwards. This puts the odds of success at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 63 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 March 27, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SHOP as a result. In of 86 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 March 22, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SHOP crossed bearishly below the 50-day moving average on February 27, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 Aroon Indicator for SHOP entered a downward trend on March 14, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Moving Average Convergence Divergence (MACD) for SHOP just turned positive on March 13, 2024. Looking at past instances where SHOP's MACD turned positive, the stock continued to rise in of 53 cases 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 339 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 slightly 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 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 well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 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 (10.953) is normal, around the industry mean (28.564). SHOP has a moderately high P/E Ratio (771.700) as compared to the industry average of (146.896). Projected Growth (PEG Ratio) (1.089) is also within normal values, averaging (2.776). Dividend Yield (0.000) settles around the average of (0.085) among similar stocks. P/S Ratio (14.164) is also within normal values, averaging (77.699).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an operator of eCommerce website that allows customers to sell online by providing software to create an online store
Industry PackagedSoftware