To The Moon

$Shopify(SHOP)$ is expected to release earnings on 13 Feb 2024 before the market opens (BMO). Shares surged in early November after the Canadian e-commerce firm reported another quarter of strong bottom-line and top-line growth and also gave an upbeat outlook.

Like a lot of similar e-commerce companies, Shopify has been cutting costs. In May, the company laid off 20% of its workforce. It also announced plans to sell its logistics unit to Flexport, a supply chain software startup.

Shopify's fourth-quarter profit is expected to more than quadruple to 31 cents a share, with revenue up 19% to $2.07 billion.

Technical is showing uptrend based on Shopify have been trading for more than 50 trading sessions above the 50-day MA period. I would think investors would be interested to see how Shopify would show the savings from the cost cutting and if they are going to implement another one.

We have seen some e-commerce companies suggest a weak market in 2024 as well.

Shopify (SHOP) Last Reported Earnings

SHOP last reported earnings on 02 Nov 2023 before the market opened (BMO). SHOP shares gained +22.4% the day following the earnings announcement to close at 59.71. Following its earnings release, 101 days ago, SHOP stock has drifted +51.9% higher.

From the time it announced earnings, SHOP traded in a range between 58.95 and 91.44. The last price (90.72) is closer to the higher end of range.

Estimated implied straddle shows 13.9% for upcoming earnings, we could see similar move of more than 10% after its earnings result.

Shopify (SHOP) Earnings Advantage and GF Score

If we look at how the expenses and income played out for Shopify in Q3, we could see that they have actually have the R&D expenses almost equal to the SG&A. This is one area we could be looking at on how these cost will translate to better opportunities and sales.

There might be higher merchant subscribers because of the enhanced platform, so we might still see a pretty high expense on the R&D.

GF score look to show that Shopify has a good potential of growth and momentum, this can be seen from how the stock have been trading above 50-day MA period for more than 50 trading sessions.

Summary

Based on what I have gathered, if Shopify continue to gather the same momentum and growth for its platform, I think we can see a positive price effect move on its stock price post earnings.

Appreciate if you could share your thoughts in the comment section whether you think Shopify would be able to provide a positive price effect post earnings due to a good potential growth and momentum?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.