rapid growth rate Shopify (NYSE:Shop) at least, morgan stanley Analyst Keith Weiss.
Since mid-2020, leading e-commerce platforms have reported annual revenue increases of more than 20% every quarter. Weiss has enough confidence in future growth at a similar pace to upgrade the stock from Hold to Overweight and raise his price target to $85 per share.
Why Wall Street expects more growth from Shopify
Shopify accounts for about 11% of all e-commerce in the United States. That means there's a lot of room for continued growth. New entrants could help keep even overburdened consumers profitable. all birdsIf you're a Shopify client, let it wear out a bit more before replacing it.
A few years ago, almost all of Shopify's clients were small and medium-sized businesses. We have recently onboarded existing clients including: mattel And while running.We also contracted with an industrial heating and cooling specialist. careeruses its platform for B2B and consumer sales.
Is Shopify a good stock to buy now?
Enterprise retail and huge B2B opportunities give Shopify a realistic growth runway to justify its $85 price target. That said, reporting 20% annual revenue growth for about 10 consecutive years is a huge expectation for any company.
Shopify's recent price already has a large amount of growth baked into its valuation. The expected P/E ratio for the company's stock is approximately 69 times. If unforeseen difficulties prevent Shopify from growing exponentially over the next few years, investors could suffer severe losses. It's still a good stock to buy, but only for investors who can tolerate significant risk.
Should you invest $1,000 in Shopify now?
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Cory Renauer has a position at Shopify. The Motley Fool owns a position in and recommends Shopify. The Motley Fool has a disclosure policy.
1 Wall Street analysts believe Shopify's stock price will be $85. Should I buy it for around $69?Originally published by The Motley Fool
