Is it time to invest in Shopify stock after reporting record Black Friday sales?
- Shopify shares edged lower on Monday despite an upbeat sales report.
- The company reported record Black Friday sales to kickstart the holiday season.
- SHOP announced $2.9 billion merchant sales for Black Friday, representing a Y/Y rise of 21%.
On Monday, Shopify Inc. (NYSE:SHOP) shares edged slightly lower despite reporting record Black Friday sales during the weekend. The company said merchant sales increased by 21% from the previous year’s Black Friday sales to $2.9 billion.
The company said it generated peak sales of nearly $3.1 million per minute at 12:02 PM EST on Black Friday, with merchants crossing $1 billion by 4:00 pm. The average selling price this year increased to $101.20 from $90.70 last year.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Shopify shares are still up more than 40% this year, despite declining by more than 8% since the 19th of November.
Time to pounce on the growth opportunity?
From an investment perspective, Shopify shares still trade at steep valuation multiples despite the recent pullback. As a result, it may not be the best option for value investors.
On the other hand, investors targeting growth opportunities could be excited by Shopify’s earnings growth prospects.
Analysts expect its EPS to rocket by more than 330% this year before rising at an average annual rate of 28.76% over the next five years.
Technically, Shopify shares seem to be trading within an ascending channel formation in the intraday chart. However, it has recently pulled back to find the trendline support, creating an opportunity for a rebound.
Therefore, investors could target potential upward profits at about $1,653, or higher at $1,765, while $1,483 and $1,364 are support levels.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use: