Shopify share price forecast ahead Q4 results

Shopify Inc. (NYSE: SHOP) will announce fourth-quarter earnings results this Wednesday, February 16, before the market opens.

Shopify shares have weakened more than 35% since the beginning of the 2022 year, and the current price stands at $889.

Deutsche Bank lowered its price target on Shopify

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Shopify will announce fourth-quarter earnings results tomorrow, and according to Deutsche Bank, Shopify will report solid results as the company continues to benefit from new merchant growth and the shift to online commerce.

Shopify’s business has proven improvements throughout the last several quarters, and a large focus will be on Shopify Fulfillment commentary as the firm’s field work suggests a meaningful change to the company’s partner-led SFN strategy. Bhavin Shah, an analyst from Deutsche Bank, added:

SFN has been a key part of the Shopify investment thesis as it provides a holistic solution to a high-priority merchant need while monetizing from it appropriately. While we remain unclear on what the shift in strategy means for Shopify’s long-term ambitions in fulfillment, at the very least, we believe it limits any material upside on near-term take rate expansion.

Deutsche Bank lowered its price target on Shopify shares to $1400 from $1600, but this still implies more than 50% upside potential compared with a current share price.

Shopify remains the go-to platform for entrepreneurs around the world, and the company is in a good position to grow its business. Last month, Shopify CEO Tobias Lutke joined the board of directors at Coinbase Global, which boosted the existing relationship between these two companies.

Shopify accepts more than three hundred cryptocurrencies on its platform through Coinbase, and CEO Tobias Lutke said that the company continues to invest in a number of opportunities.

Shopify and JD.com negotiate a strategic partnership that will make it easier for U.S. merchants to sell to consumers in China. This deal would open access to J.D.’s 550 million active customers in China and unlock the world’s largest e-commerce market for merchants.

Technical analysis

Shopify shares weakened more than 35% since the beginning of the 2022 year, but if the company posts strong fourth-quarter earnings results, the share price could be above the current levels.

If the price jumps above $950, it will signal to buy Shopify shares, and the next target could be $1000.

On the other side, if the price falls below support at $800, it would be a strong “sell” signal, and we have the open way to $700.

Summary

Shopify will announce fourth-quarter earnings results this Wednesday, and if the company posts strong fourth-quarter earnings results, the share price could be above the current levels. Deutsche Bank lowered its price target on Shopify shares to $1400 from $1600, but this still implies more than 50% upside potential compared with a current share price.

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