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Trends & Analysis
News
Mastercard’s shares decline despite upbeat results
News
Tesla’s stock surges after upbeat Q4 print
News
Is there a golden opportunity with Shopify?
News
Investors unimpressed by Microsoft’s earnings beat
News
How should you play the NASDAQ 100’s moment of truth?
News
Baker Hughes shares decline amid weak Q4 print

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Asset Watch

Is there a golden opportunity with Shopify?

 

Thursday, January 26, 2023

Following a brutal 2022, investors’ appetite for technology stocks has rebounded, thanks to the NASDAQ Composite exhibiting relative strength in 2023. Moreover, even though Shopify plunged by more than 74% during the inflation-led bear market, brighter days could be ahead for the e-commerce giant.
Deutsche Bank analyst Bhavin Shah upgraded the stock from a hold to a buy on Jan. 23 and raised his price target from $40 to $50, writing:
“Many leading brands are now actively looking to migrate or are in the process of migrating over from legacy/competing solutions, and we note this is in sharp contrast to our conversations over the last 12 months which consistently highlighted the pace of migrations slowing.”

So, with Shopify’s platform adoption on the rise and the technicals being more constructive, could the 2022 loser become a 2023 winner?

Interestingly, Shopify recorded a golden cross on Jan. 19, where its 50-day moving average surpassed its 200-day moving average for the first time since February 2019. This milestone often signals the beginning of a new uptrend.

In addition, Shopify has been consolidating for roughly eight months, and base-building is often an integral part of forming a bottom. But, since its daily RSI is near overbought territory and the Jan. 24 close was 13% above the 50-day MA, pouncing on the next pullback near the 50-day MA may be the best approach for long-term investors.

Do you plan to splurge on Shopify?


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