Will Shopify Surprise Again in Q1?

Shopify Inc. (NYSE: SHOP | SHOP Price Prediction) is scheduled to release its first-quarter financial results before the markets open on Wednesday. Analysts are calling for a net loss of $0.18 per share and $443.11 million in revenue. The same period of last year reportedly had $0.06 in earnings per share and $310 million in revenue.

The company recently expanded its commerce platform with the introduction of its Shop App in late April. This first-of-its-kind shopping assistance app looks to combine the discovery of local businesses, personalized recommendations, seamless payment and tracking.

Ultimately, the Shop app is designed to bridge gaps in online shopping. Because of social distancing and stay-at-home measures, customers have become more reliant on online ordering than ever before, as it becomes more challenging for people to stay connected.

Shop offers users the ability to easily discover local businesses, receive product recommendations from their favorite brands, check out easily and track all their online orders.

[nativounit]

Keep in mind that Shopify’s platform powers over a million businesses. With this app, Shopify is extending its reach to customers, and the growth from here could be huge. To date, Shop Pay has processed over $8 billion in sales, while 16 million shoppers have used Arrive to track their e-commerce orders.

Excluding Tuesday’s move, Shopify stock had outperformed the S&P 500 and Dow Jones industrial average with a gain of about 65% year to date. In the past 52 weeks, the share price was closer to 150% higher.

Here’s what a few analysts had to say about Shopify ahead of the report:

• KeyCorp has an Overweight rating with a $700 price target.
• Canaccord Genuity has a Hold rating and a $600 price target.
• Wedbush has a Neutral rating with a $550 target price.
• Rosenblatt Securities rates it a Buy with a $630 price target.
• The Barclays Hold rating comes with a $410 price target.

Shopify stock traded up about 4% to $687.51 on Tuesday, in a 52-week range of $242.23 to $689.98. The consensus price target is $512.55.

[recirclink id=704770][wallst_email_signup]