SHOP LONG : Its stock is expensive, valuation can be justified Shop is at critical support level (major structured level
Shop is at 50 Ema support monthly and we have seen significant reaction there in the past
Rsi at oversold area weekly and monthly time frame
You have a confluence of indicators showing that the bottom may be in
I will say around these levels going into earning with the stock being beat due to inflationary pressures from investors — this provides a great entry point and need be - dollar cost average down
This was just a 1600 dollar stock cut in half! Bargaining chip
1. Structured level as support
2. Oversold Rsi and Macd levels
3. a spinning top at the bottom of a downtrend could signal that bears are losing control and bulls may take the reins.
Summary: Get with the program!
“ The company reported Q3 results in November, and the financial picture did not seem to be hurt by these inflationary pressures. The company reported total revenue growth of 47% year over year to $1.1 billion, and its merchant solutions -- which investors worry are going to be hurt by inflation -- grew 51% year over year.
Shares have been crushed because of low investor sentiment, but analysts are predicting continued expansion. Wall Steet expects $1.34 billion in Q4 revenue, which is growth of 20% sequentially and 37% year over year. While this is lower than Q3, it still represents a strong improvement. Management cited that holiday sales were larger than normal, but still underwhelming industrywide, showing that the slowing growth was not just a Shopify problem. ”
Shopify has the best of a few worlds: It is already dominant in the SMB space and has plenty of runways to growth via product expansion and a burgeoning addressable market of customers
Also keep in mind that Shopify's growth is decelerating, however understand that the expansion of its stickier subscription business should offset the tough year-over-year comparisons for its merchant solutions business, which experienced unusually strong gross merchandise volume (GMV) growth during the pandemic.
