tl;dr
Wedbush downgrades Shopify (NYSE:SHOP) to neutral from outperform, citing a significant increase in share price following the release of earnings in November. The firm has raised its price target to $68 from $66, indicating a potential ~9% downside from Tuesday's close. Analyst Scott Devitt attri...
Wedbush downgrades Shopify (NYSE:SHOP) to neutral from outperform, citing a significant increase in share price following the release of earnings in November. The firm has raised its price target to $68 from $66, indicating a potential ~9% downside from Tuesday's close.
Analyst Scott Devitt attributes the downgrade to a 53% surge in share price since the Q3 results were reported on Nov. 2. Shopify currently trades at 17.8x EV/2025E gross profit, compared to the peer group average of 9.6x, and 43.1x EV/2025E adjusted EBITDA, versus the peer group average of 30.1x. Devitt emphasizes limited room for further multiple expansion and a lack of incremental catalysts post the investor day on Dec. 5. Despite still favoring the company's strategy and competitive positioning, he forecasts revenue growth of 22% and 20% in 2024 and 2025, with adjusted EBITDA margins reaching 21% in 2025. In contrast, he sees greater upside in eCommerce for Amazon (AMZN) and MercadoLibre (MELI). Separately, Mizuho maintains its neutral rating and $65 price target, signaling a potential ~13% downside.
More about Shopify Inc
Shopify Inc. (SHOP) is a commerce company that offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company has a market capitalization of approximately $96.4 billion and is classified under the technology and services-prepackaged software sector. The stock has seen a 5.2% increase in the last period, with a current price of $68.04. The Relative Strength Index (RSI) stands at 68.04, indicating a slightly overbought condition. The stock has shown a bullish trend, with a positive momentum of 0.255. However, it is important to note that past performance is not always indicative of future performance, and there may be potential risks or uncertainties associated with the stock's current performance.
More about Amazon.com Inc
Amazon.com Inc. is a leading American multinational technology company in the e-commerce, cloud computing, digital streaming, and artificial intelligence sectors. With a market capitalization of $1.517 trillion, the company's stock is currently trading at $3,527.94 per share, reflecting a 1.94% increase. Amazon's stock has shown a bullish trend with a Relative Strength Index (RSI) of 73.56, indicating potential overbought conditions. The company's stock has also exhibited a 2.357% increase in the Bollinger Bands, suggesting high volatility. Despite the positive stock performance, market sentiment may be affected by potential risks and uncertainties, given the significant influence Amazon has on the global economy and culture. As such, it is important to consider the potential impact of these factors on the company's future performance.
More about MercadoLibre Inc.
MercadoLibre Inc. operates online trading platforms in Latin America and is headquartered in Buenos Aires, Argentina. The company falls under the category of TRADE & SERVICES and specifically SERVICES-BUSINESS SERVICES, NEC. With a market capitalization of 13.21 billion, MercadoLibre Inc. has a current stock price of 263.36 and a 52-week range of 80.53 to 263.36. The stock has a P/E ratio of 80.53 and a beta of 0.0747. The company's revenue stands at 1.805 billion with a net income of 398 million. The stock performance has shown a bullish trend, and market sentiment appears to be positive.
Disclaimer:
This is not financial advice. Please do your own research before investing in any asset.