Shopify Stock: Is Its Bubble About to BURST?

published on August 2, 2020

Shopify is arguably one of the most hyped stocks in the software application category in 2020 with their stock price going from 305 dollars to over 1 000 in only three months in 2020 shopify is a one-stop shop for small

Businesses and e-commerce entrepreneurs where you can create a website backed by powerful tools that can help you find customers drive sales and manage your day-to-day with the rumors that

Shopify might buy out stampscom the volatility of the stock price got real with the bulls and the bears on wall street literally going a head-to-head ranging from

Very bearish to very bullish so obviously i had to put my investiva hat on to chime in and see what could be next for the shopify stock price and today i'm wearing a suit so you can trust me

In today's video i'm going to analyze the shopify stock price from five points of my signature invest diva diamond analysis that analyzes any asset from five points fundamentals technicals market sentiment

Risk assessment and overall how it fits within your unique portfolio and with that we're going to find out what the future holds for the shopify stock price what type of investor should consider

Adding shopify to their portfolio and at what price and of course whether or not i'm personally invested in the shopify stock we are going to queue in the intro and while we do that

Head over to the comment section and tell me do you personally use shopify or are you customer of a company that uses shopify that you know of head over to the comment section

And let me know we're going to keep in the intro and let's go hey guys i'm canada danielle three-time author with the fourth one coming this thursday and the founder of the invest

Diva movement the march to jump on in order to take control of your financial future and to make your money work for you i analyze tens of assets for my premium investing

Group or pig members every single week so if you'd like to see how you can get a three months free membership to the pick what you're going to do is to open up a new tab

Type in learninvestdivacom for slash yes i'm going to add a link to it in the description area as well register your receipt from my upcoming on-demand training so you can watch it after this video is

Over and then come back here so that we can get to the shopify stock analysis shopify is a leading platform for small businesses and it's supported by the largest number of merchants of any platform the company

Could continue to drive strong revenue growth over the medium term thanks to more merchant subscriptions and the add-on features like payments sfn

And shipping they have been really good with the marketing too and they've been using search engine optimization blogs and network referrals to attract their small business

Customers and their scaling will help them with margin expansion as well they're also expanding with larger businesses creating customized platforms for those who will

Pay them up to two thousand dollars per month so as you can see the basic shopify is only twenty nine dollars per month and here on the website we have twenty two ninety nine dollars per month

But there are rumors that for massive big larger customers they have a customized payment plan that is up to two thousand dollars what this shows is that they are

Prepping to guide their customers up their value ladder if you're an entrepreneur you know what that means shopify's market cap as of today july 21st 2020 is 1135 billion dollars they do not pay dividend

And their earnings okay where are we their earnings is coming up on july 29th their biggest competitors i mean we don't have an exact competitor in exactly the same as shopify but

Bigcommerce uh as supposedly one of their competitors are not publicly traded wix as a website building company they are publicly traded they are based in israel with a 14 billion dollar market

Cap then we've got squarespace which is again not publicly traded and then morningstar says the salesforce and adobe for that matter are shopify's competitors which uh

It's a little bit different but i guess they're kind of in the same category right but shopify crossed an important milestone of signing up the one millionth merchant on his platform in 2019

But the fans say that this is nothing compared to the 288 million small businesses that could eventually move their businesses to the shopify platform and exponentially grow shopify's business

And not to mention that the worldwide opportunity is also massive in fact there was an article that came out by the motley fool in june talking about 10 reasons to buy shopify and never sell which probably helped

Pumping the shopify stock price even further especially because of motley fools as much as i like their marketing and search engine optimization skills they are famous for pumping and dumping stocks and

They literally can create a ton of hype due to their wide reach i'm talking about motley fool so when i saw this article i knew it might soon be time to start selling the shop stock

After it reaches key resistance of all levels that i am going to show you in a little bit looking at the charts it kind of looks like this may be in fact the case and now we have the shopify and stampscom buyout

Speculations because citron research thinks that we will soon be buying postage stamps from shopify and when this speculation first came out both shopify and sam stocks

Went soaring but right after that the enthusiasm kind of started to fade away and now we have analysts ranging from very bearish to very bullish with each of them focusing only on the points of supporting their

Respective views on the shop stock price so for example we have the bulls thing the shopify's growth has been strong and is expected to remain so with robust new merchant ads increasing

Gmb and high attach rates they say shopify is attractive for small businesses because it is simple to use has a wide variety of built-in features that can make it an

All-in-one solution the company has many experts to help small businesses too with website design photography and other elements of the process and they benefit from a large referral

And developer ecosystem on the other hand we got the bears and the now fans saying that someone may still fail to live up to the optimistic assumptions already priced in their share price

Being priced in a share price basically means that people were speculating buying the rumor and they might sell the actual news bears also say that shopify is overexposed to the economic cycle and

Retail volume could probably decline in the downturn and last but not least this is what i personally think is that with covet 19 many businesses looked to bring their businesses online which obviously helped

Shopify but this trend could end or a competitor could take over we never know now that we've got all this down let's take the charts and look at shopify's price action but before we do that head

Over to the comment section and tell me with all the fundamentals and sentimental points of view where do you stand right now are you a bull or a bear when it comes to shopify stock

All right we're now looking at the shopify stock price the last time i actually analyzed the shopify software for our premium investing group was here on may 18th when the market price had just reached

An all-time high back then which was a 773 and back then based on financial retracement analysis i predicted that the shopify stock price can go

Up to 50 percent from the retracement level at around 1 000 and guess what this is what exactly happened the next resistance level is the 23 of the measured tradesman level based on

This previous all-time high obviously at 1 125 so we've had a diva win so far but now that we have a new all-time high i obviously have to renew this analysis so let's go this is all of my analysis from back in

The day for our premium missing group members but as you can see on the monthly chart the shopify stock price has generally just grown and grown and grown and grown and grown and grown and it accelerated

In 2020 the new all-time high right now is over here so we have to re-adjust our fibonacci retracement level now this is the new resistance level and i have to create new resistance levels for this as

Well one way to do this is to again use the fibonacci retracement levels i might go long term with this one so we're going to do this bring this up here to create our next resistance level

Right here at 1280 the next long-term profit target is set at 1444 but remember this is definitely long term over a year because i'm using the financial trace

Metal level that traced the price action from back in 2019 based on the subnautica trade smell levels these are the support levels now so we got 849 712 and then the 50 percent from the tracing

Levels actually have price at 594 now considering that shopify stock price literally just went from 594 to over 1000 in nearly two months

If the wall street bears are right about all the deficiencies in the shopify stock and if a competitor comes along that does things better than shopify and has a better branding then

Yeah you know what we could see a pullback now we cannot rely on a second wave of covet 19 to bring down shopify stock price as much because look the first cobot 19 bearish momentum didn't

Actually impact the shopify price that much and its price was able to recover pretty rapidly comparing to many other companies in the tech sector so shopify kind of

Benefited both from covet 19 and being the tech sector sector that is just skyrocketing right now is out of control and majority of analysts are just baffled as to what the heck is happening

Now this doesn't mean that the second wave of covet 19 bearish momentum wouldn't at least a tiny bit impact the shopify stock price or trigger it so that's the reason why i would like to set our buy limit orders

At any of these levels to prepare for a potential crash as you can see this resistance will add 1075 that i did predict is really challenging the stock price to go higher

But don't be fooled because the previous level at 849 also challenged the stock price from going higher so there's also a chance that by the time that shopify announces their earnings on july

29th and if they exceed the expectations we could even see a surge above this level so there is a little bit of an uncertainty going on in the markets

Yes of course a lot of the expectations has already been priced in but if they exceed the expectations and the price could go even higher and i think that's the reason why we see so

Much dividends between the bears and the bulls in the markets and there is almost no way for us to say for certain which direction the price is going to go so if you are a

Fan of shopify and considering that this does not actually pay a dividend so this is not suitable for somebody who is you know in their older days and looking for dividend payment income

And you're only looking for growth then you want to mitigate your risk you don't want to miss out on shopify stock price going down you don't also want to miss out if it just would never go back and

Continues its way up so how do i do that this is how i do it i set by limit orders to buy more of the asset as the price goes down as and if the price goes down and if you

Don't have any shopify and you're interested in this stock then you might want to consider purchasing your first portion at the current market price today

The stock price is actually dropping those are the days that i actually like getting into the market if you're a fan of buying the orders as i am you could consider getting in and buying your first portion at 9

20 and then setting your buy limit orders at these respective levels then when it comes to taking profit again because shopify doesn't pay a dividend payment i would consider taking profit partial

Profit at any of these levels and getting back in again when you're developing your investment strategy make sure to also consider the tax consequences especially if you're in the us

If you're holding your stocks for over a year your tax bracket could actually be lower although there are ways to go around it there are some day traders and short-term traders who have found a

Loophole and you can bring down your capital gain taxes to 21 but that is only if you are treating larger amounts so if you're getting in and out within a year there's

A high chance you're gonna pay more taxes on your capital gain so keep that in mind and last but not least am i invested in the shopify stock yes i bought my first shopify stock last

Year and i don't have that much exposure to the stock so i'm considering getting back in once the stock price goes back down again because i already have some

Shopify i'm not too much in a hurry to buy right now and i'd rather wait for it to go down of course this means that i might miss out on more shopify shares

But i have made my piece with it so if i don't get in i don't get it and that is how you should manage your emotions when you're getting any getting today you have to be prepared for the stock

Price to potentially drop 50 tomorrow and if you consciously have made that decision that you can make through it then go ahead and hit that buy button but if you think you're going to

Get a panic attack if the stock price drops then probably you should not be investing in this asset remember that the majority of investment management is about emotion

Management and mitigating your risk if you'd like to learn deeply how you can do this on your own without the help of a financial planner

Or a money manager how you can become your own money manager and create a portfolio that is unique to you and your needs at any given stage of the economic cycle

You know what you got to do open up a new browser type in learn dot investment dot com forward slash yes and register your seats for my on-demand

Training on how to take control of your financial future and how to make your money work for you this is an unbelievable opportunity for you to learn how to do it on your own and the

Right way so you don't panic every time the stock prices move by the end of that master class i also talked about how you can get a three month pre-membership

To my premium investing group or the pick so make sure that you stay until the very end as always thank you so much for tuning in if you like this video don't wait go ahead and

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