Shares of Shopify (NYSE: SHOP) inches up in pre trading session on Thursday as the firm winning over one more analyst. The e-commerce business was raised by JMP Securities from market perform to market outperform, with a $65 price objective. The goal suggests a 45% gain over the stock’s closing price on Tuesday of just under $45 per share.
Wall Street has generally had a neutral opinion on Shopify. According to data gathered by Bloomberg, 39% of analysts who cover the firm rate the stock as buy, while more than half have a hold-equivalent recommendation. The stock soared about ten-fold from 2019 and 2021 before declining by by 75% in 2022. It has been working hard to make up those losses this year; shares have increased by around 31%.
In a note published on Wednesday, JMP Securities analyst Andrew Boone stated that “there is room for greater” cost-cutting and added that “Shopify is the leader in commerce enablement and continues to take share.”
Of course, with a potential recession coming that might affect consumer purchasing, Shopify, like its competitors, faces macroeconomic risks, according to Boone.
According to Boone in the note, the firm is also in the process of investing in SFN (Shopify Fulfillment Network), its fulfillment network, although the amount invested is smaller than anticipated and there is potential for growth in Shopify’s gross merchandise volumes as it achieves momentum with bigger enterprise customers.
With a $65 price target, JMP joins analysts at Oppenheimer, RBC Capital, and CIBC Capital Markets in setting a new Wall Street high.
Shopify and Google Cloud AI Integration
Shopify Inc. (NYSE:SHOP) and Google Cloud announced a new integration that enables retailers using Commerce Components (Shopify’s enterprise retail solution) to take advantage of Google-quality search capabilities and AI innovations. Shoptalk 2023 is one of the most significant events for the retail industry.
Today, Shopify corporate brands can directly utilize Google Cloud’s Discovery Al products through Commerce Components, the platform’s cutting-edge, composable enterprise retail stack. This integration expands access to Google’s cutting-edge search and browsing capabilities so that businesses can provide their consumers more seamless and successful purchasing experiences. It is currently accessible to Shopify merchants worldwide and is available in the majority of languages.
The new partnership between Shopify and Google Cloud gives corporate companies access to product discovery tools powered by artificial intelligence (AI) that solve real-world business problems.
Malayah Bernard
Casey Franklin
Milana Peters
Genesis Roberson