Wong predicts that the company will save approximately $750 million in operating expenses by transferring employees to Flexport. He also expects the consensus EBIT for FY24 to be around $650 million, which he believes is significantly understated. Wong’s estimation is that it will come closer to $1.15 billion, up from $885 million.
Additionally, Wong anticipates that Merchant Solutions’ gross margins will be around 40% (compared to 38.5% previously) as fulfillment costs are removed from COGS. He also predicts that blended non-Payments gross margins will be in the 80% range.
CNNMoney reports that the median target price for Shopify is $65.00, with a high estimate of $80.00 and a low estimate of $35.00.
Shopify Inc. Shows Impressive Growth with +752.64% Increase in 2023
On June 20, 2023, Shopify Inc. (SHOP) opened at $64.93 and experienced a range of $63.33 to $66.55 with a trading volume of 12,889,840. The company’s market capitalization was $82.7B. Shopify has shown a remarkable turnaround with a growth rate of +752.64% this year and is expected to continue this growth trend with a projected earnings growth rate of +228.09% over the next five years. Shopify operates in the technology services and packaged software industries and has its corporate headquarters in Ottawa, Ontario. Shopify’s stock price was not immune to the broader market downturn on June 20, 2023, with a decline of -2.69 or -6.74%. The company’s next reporting date is August 2, 2023, with an EPS forecast of $0.07. Shopify’s annual revenue for the previous year was $5.6B, with an annual loss of -$3.5B and a net profit margin of -61.79%.
Shopify Incs Stock Update: Median Target Price and Consensus Among Investment Analysts
On June 20, 2023, Shopify Inc’s stock (SHOP) had a median target price of $65.00, with a high estimate of $80.00 and a low estimate of $35.00. The median estimate represented a +1.15% increase from the last price of $64.26. The current consensus among 48 polled investment analysts was to hold stock in the company. Shopify Inc is a leading e-commerce platform provider that enables businesses to create and manage their online stores. The company’s stock has been performing well in recent years, with its share price increasing by more than 500% since its initial public offering in 2015. Despite concerns about the company’s valuation, many investors remain bullish on its long-term growth prospects.
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