SHOPIFY

Analysis before buying or selling Shopify shares

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Find out how you can effectively study the Shopify share price by learning what information is most useful for your analyzes of this stock. In this detailed article we offer detailed and important information on this company and its economic environment so you can achieve comprehensive and effective analyses of its share price. You will notably learn more about this company’s activities and its principal sources of revenue as well as its major competitors and the factors you should take into account when completing your fundamental analysis of this company.

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ISIN code: CA82509L1076

Ticker: NYSE: SHOP

Index or market: NYSE

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Elements to consider before selling or buying Shopify shares

Analysis N°1

Firstly we would closely follow the progress of consumer purchase policies, notably the developments in online commerce.

Analysis N°2

The operations implemented by Shopify with the aim of positioning itself on the emerging markets are also events that should be monitored.

Analysis N°3

We would also monitor the increase in demand for cloud services from professional users.

Analysis N°4

Of course, any weak points in the security of the platform operated by Shopify would also have negative effects on this asset.

Analysis N°5

Finally we would of course monitor the competition in this activity sector as well as new entries from significant players in this sector.

Analysis N°6

It’s clear that you will also need to think about implementing a full technical analysis of this asset before deciding to take position on the signals received through the fundamental analysis. It is through a comparison of these two types of signals that you will reveal the best possible strategy.

Analysis before buying or selling Shopify shares

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General presentation of Shopify

Let us take a moment to examine the Shopify Company and its principal sources of revenue. In fact, by learning how the company generates its income you will be able to more easily detect the factors that could lead to an increase or decrease in this company’s share price on the stock markets.

Shopify Inc. is a Canadian company that offers a multichannel commercial cloud platform specifically created for small and medium companies. This company thereby offers subscription solutions as well as sales solutions to its clients.

The different software applications developed and marketed by Shopify are destined for merchants that use them to manage their companies through different sales channels with storefront and mobile sites, physical retail outlets, shops and social media as well as marketplaces. From the Shopify platform the merchants can obtain an overall view of their activities on all the sales channels and manage their products and stocks, process orders and payments, dispatch orders, establish relationships with their clients and complete analyses and reports through a back office system.

This platform also integrates an optimised checkout system for smartphones with the aim of offering client consumers the opportunity to purchase products on the mobile websites with the possibility of paying using Apple Pay.

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The major competitors of Shopify

Still with the objective of comprehensively analysing the Shopify share price and its growth perspective over time, you should of course be fully aware of the competition in this activity sector. This is why we now offer you a presentation of the current major competitors to the Shopify Company.

BigCommerce

This company is also specialised in private technology with an SaaS e-commerce platform. BigCommerce is an American company based in Texas that was created in 2009. Among the functions available through this platform we note the groups and classifications of clients, SEO optimisation and web hosting.

Wix

This is a platform enabling the creation of HTML5 websites in a mobile version. This platform also serves small and medium merchants with an online payment module for e-commerce.

Prestashop

Yet another competitor to Shopify but this one is an open source web application enabling the creation of online e-commerce websites. This solution is currently one of the most popular on the market.

Amazon

Finally, we would also take into account the competition from the giant Amazon which is specialised in e-commerce and also offers traders the opportunity to sell their products directly online from their platform without the need to create their own website.

The major partners of Shopify

To conclude let us examine the most recent partners of Shopify and the strategic alliances implemented by the company that have enabled it to progress in terms of growth and development over this time:

Cdiscount

In January 2020 Cdiscount and Shopify announced their partnership and the accompanying launch of the Cdiscount Feed application enabling merchants that use Shopify to also sell their articles on the Cdiscount marketplace. Both companies collaborated on the development of this tool aimed at developing the online activity of the French sellers of Shopify and thereby strengthened their partnership by combining their abilities.

EBrand Commerce

In 2019 eBrand Commerce, a partner of Magento, also entered into a partnership with Shopify. This agency that is specialised in e-commerce for premium brands was launched in France and represents a new multi-channel platform for merchants through this partnership. Up to this point eBrand Commerce worked exclusively with Magento but it can now offer prospects a new e-commerce solution that has already proved its worth worldwide.

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Frequently Asked Questions

What other companies does Shopify have a stake in?

The Shopify Group has achieved a number of strategic acquisitions over the last few years. For example it purchased MNDCreative in the mobile devices sector in 2010. It then bought out Select Start Studios Inc., also a specialist in mobile telephone engineering. Finally, in 2013, Shopify acquired Jet Cooper, a 25 person design studio based in Toronto. These strategic acquisitions have enabled Shopify to become one of the leaders in online commerce as it is today.

Who are the principal clients of Shopify?

The platform offered and operated by the Shopify Group has already tempted numerous major clients including large international companies. Major clients of this company include well known brands such as Tesla Motors, Budweiser, Outgo, Kylie Jenner, The New York Times, The economist, Yeezy Supply, Kim Kardashian West and PritInk Canada.

How to anticipate the future movements in the Shopify share price?

The best method of predicting future variations in the Shopify share price is to complete two distinctly separate analyses simultaneously with a fundamental analysis based on the events, announcements and publications related to this company and a technical analysis which is based on the major chart indicators. It is in fact by combining these two analyses that you will obtain the best chance of obtaining comprehensive and reliable trading signals.

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