Shopify Inc. (NYSE: SHOP) is a technology company that develops and operates a cloud-based e-commerce platform specifically aimed at small and medium businesses. Its software can be utilized to create digital storefronts, host marketing campaigns, handle payments and inventory, and provide extensive customer relationship management. With an all-in-one solution for smaller businesses that lack capital, it has become one of the most popular e-commerce solutions today. The company’s stock has outperformed many of its peers.
Over the previous year, Shopify stock has grown more than 160%, and analysts predict that there’s more room for expansion. With an average target price of $1,137.83, there could be a significant upside for investors. With an even bigger high-end target price of $1,450.00, new investors could potentially enjoy huge returns in 2021. Shopify’s sales and income have grown for five consecutive years, and the company has been consistently improving its EBITDA margin. The company became profitable in 2020, and earnings are forecast to improve by at least 34% over the next year.
For the potential price upside and the company’s bottom-line growth, this is one of the most compelling stocks to watch in 2021.
- 1 Year Price Growth: 55%
- YTD Price Growth: -3.49%
- 3 Month Price Growth: 91%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.