Jim Cramer has expressed renewed optimism towards Shopify Inc. SHOP, as the stock recently formed a Golden Cross, signaling favorable prospects for the e-commerce giant.
A Golden Cross, a technical indicator, signifies bullish momentum when a stock’s short-term moving average crosses above its long-term moving average.
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During a recent segment on CNBC’s Mad Money, Cramer emphasized his confidence in Shopify, stating, “I think Shopify is at a great level to buy. Harvey Finkelstein is doing a terrific job, and the stock should be perfect.”
Shopify has shown strong growth, with a 20.56% increase in the past month, an 11.26% uptick year-to-date, and an impressive 53.50% surge over the last year.
Shopify Stock Shows Positive Momentum
Traders and analysts are abuzz with excitement over Shopify’s current stock performance.
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With Shopify’s stock price at $80.86, comfortably above its moving averages, including the 50-day simple moving average of $72.34 and the 200-day moving average of $71.82, the stock shows strong bullish signals. Additionally, Wall Street analysts have commended Shopify for its product diversity, user-friendly interface, and scalability.
Shopify’s Stellar Q2 Performance
Shopify’s exceptional Q2 results have contributed to the positive sentiment surrounding the company. Free cash flow surged by 240% to $333 million, while revenue increased by 21% year-over-year. Despite a slight slowdown in GMV growth, Shopify still achieved a substantial $67.2 billion in gross merchandise volume.
Anticipated low-to-mid 20% revenue growth in the third quarter positions Shopify as a top-performing stock. Although the forward P/E ratio is near 60, the expectation of a 43% EPS growth justifies Shopify’s current valuation.
Cramer’s Endorsement and Golden Cross Boost Shopify’s Prospects
Cramer’s bullish endorsement, coupled with the Golden Cross formation and strong fundamentals, present a promising outlook for Shopify.
Shopify’s technical resilience, along with the confidence from prominent Wall Street firms, positions the stock as a noteworthy contender as we approach 2025.
Investors seeking the next significant move might discover it with Shopify. The company isn’t just surpassing moving averages; it’s venturing into uncharted territory.
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