How to buy Shopify shares
Own Shopify shares in just a few minutes.
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Shopify Inc is a software-application business with stocks listed in the US. Shopify shares (SHOP) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$1067.21 – the same closing value as a week prior. Here's how to invest if you're based in Australia.
How to buy shares in Shopify
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Shopify. Find the share by name or ticker symbol: SHOP. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Shopify reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$1067.21, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Shopify, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Shopify. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
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Shopify share priceUse our graph to track the performance of SHOP stocks over time.
Shopify shares at a glance
|52-week range||US$305.3001 - US$1285.1851|
|50-day moving average||US$1133.9479|
|200-day moving average||US$1031.7848|
|Dividend yield||N/A (0%)|
|Earnings per share (TTM)||US$1.619|
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Is it a good time to buy Shopify stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Shopify price performance over time
|1 week (2021-01-15)||-8.82%|
|1 month (2020-12-23)||-10.91%|
|3 months (2020-10-23)||3.99%|
|6 months (2020-07-23)||14.95%|
|1 year (2020-01-23)||127.43%|
|2 years (2019-01-23)||581.49%|
|3 years (2018-01-23)||799.16%|
|5 years (2016-01-22)||4,525.96%|
Is Shopify under- or over-valued?
Valuing Shopify stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Shopify's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Shopify's P/E ratio
Shopify's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 714x. In other words, Shopify shares trade at around 714x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Shopify's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$59.2 million (£0.0 million).
The EBITDA is a measure of a Shopify's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$2.5 billion|
|Operating margin TTM||0.07%|
|Gross profit TTM||US$865.6 million|
|Return on assets TTM||0.02%|
|Return on equity TTM||4.37%|
|Market capitalisation||US$141.8 billion|
TTM: trailing 12 months
Shorting Shopify shares
There are currently 1.1 million Shopify shares held short by investors – that's known as Shopify's "short interest". This figure is 22.4% down from 1.5 million last month.
There are a few different ways that this level of interest in shorting Shopify shares can be evaluated.
Shopify's "short interest ratio" (SIR)
Shopify's "short interest ratio" (SIR) is the quantity of Shopify shares currently shorted divided by the average quantity of Shopify shares traded daily (recently around 1.5 million). Shopify's SIR currently stands at 0.78. In other words for every 100,000 Shopify shares traded daily on the market, roughly 780 shares are currently held short.
However Shopify's short interest can also be evaluated against the total number of Shopify shares, or, against the total number of tradable Shopify shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Shopify's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Shopify shares in existence, roughly 10 shares are currently held short) or 0.0185% of the tradable shares (for every 100,000 tradable Shopify shares, roughly 19 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Shopify.
Find out more about how you can short Shopify stock.
Shopify share dividends
We're not expecting Shopify to pay a dividend over the next 12 months.
Shopify share price volatility
Over the last 12 months, Shopify's shares have ranged in value from as little as US$305.3001 up to US$1285.1851. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Shopify's is 1.5951. This would suggest that Shopify's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Shopify Inc., a commerce company, provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in Canada, the United States, the United Kingdom, Australia, and internationally. Its platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was founded in 2004 and is headquartered in Ottawa, Canada.
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