What Happened?
Shares of e-commerce software platform Shopify (NYSE: SHOP) jumped 7.2% in the morning session after the company announced plans to transfer its U.S. stock exchange listing from the New York Stock Exchange (NYSE) to the Nasdaq. Markets likely reacted positively to the move, as companies listed on the Nasdaq exchange often benefit from a more technology-focused investor base, and increased visibility among growth-oriented funds. Given that technology is at the core of Shopify's business, this reinforced the favorable market sentiment.
Is now the time to buy Shopify? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Shopify’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 25.7% on the news that the company reported impressive third-quarter 2024 financial results. GMV (gross merchandise value) exceeded analysts' expectations, enabling it to beat Wall Street's revenue estimates and provide Q4 revenue guidance that came in higher than anticipated. On top of that, its revenue growth accelerated, and it produced a 19.5% free cash flow margin, showing that it can balance growth and profits. Overall, we think this was a solid quarter that revealed improved growth momentum.
Shopify is down 5.9% since the beginning of the year, and at $101.20 per share, it is trading 21.7% below its 52-week high of $129.31 from February 2025. Investors who bought $1,000 worth of Shopify’s shares 5 years ago would now be looking at an investment worth $3,044.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
