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Shopify (TSX: SHOP) (NYSE: SHOP) will release its earnings report on Thursday, and Shopify stock has already started to climb in anticipation. So let’s take a look at what Motley Fool investors might expect from the Shopify stock when it was announced on October 28.
What analysts believe
First, let’s take a look at analysts’ estimates. And in the case of Shopify actions, it’s very important to take them with care. If you’ve been watching the business for a while, it’s clear that the business is very good at overtaking not only the market but also the estimates.
Still, for the next quarter, analysts believe that Shopify stock will continue to defy expectations. Analysts see Shopify as hitting earnings per share at $ 2.75. That would be a 45% increase from last quarter, but only a 3% increase year over year.
Income, however, has grown at an impressive rate. In the last quarter, the company reported more than $ 1 billion in revenue for the first time. The average consensus estimate this quarter is now $ 1.71 billion. That’s a 54% improvement quarter over quarter!
What analysts say
However, it’s important to note that analysts expected the company to do better on revenue, expecting more of the massive growth the company has seen. And not just in earnings, but by hiring more and more subscribers. Shopify’s inventory has earned a good reputation, and if it is to continue, it will have to keep pushing the boundaries.
Luckily, there are a few things going in favor of the company this quarter. Fewer foreclosure restrictions actually mean more sales for the company that has hired local businesses. It is also expanding its distribution centers and its compensation structures are more widely available. Analysts continue to think of it as a “buy” or even a “strong buy”, with only two of 43 analysts recommending it as a “strong sell”.
Shopify shares have risen 30% in the past year, but have fallen in recent months, but only by around 5%. So that could mean that now is a good time to enter during a pullback before it starts to climb back to that $ 2,000 mark.
When it comes to Shopify stock, you shouldn’t treat it as “special” at this point. We recommend Motley Fool’s long-term takes, and that’s why I still love Shopify stocks. It was a huge winner the last few years, but now it’s stabilized. And more stability means more security. If you have the cash, the business should continue to be a solid investment for the next decade and beyond.
But if you’re looking for tech stock to be part of your get-rich-quick scheme, Shopify isn’t for you. The days of Shopify stock as a multi-bagger are probably over. It was fun, but now it’s time for something a little less volatile.
And that’s why Motley Fool investors should take a very careful look at the earnings report for long term Shopify inventory goals. He’s still growing, and it should always be. But how will she continue to involve local businesses?
How will he convince business owners, from small to business, to choose him from the vast amount of businesses currently available? Is Shopify’s stock still the future or is it part of the ecommerce past?
It is up to the income to decide.