Shopify (NYSE:SHOP) delivered strong fourth-quarter results, with both revenue and earnings surpassing Wall Street’s expectations. This did not surprise users who have been tracking the company’s website traffic trends through TipRanks’ Website Traffic Tool. The Canada-based company provides a global e-commerce platform for small and medium-sized businesses.
The tool allows an investor to predict a company’s earnings as growth in online usage may indicate higher sales. In contrast, a decline in traffic trends can suggest weak demand and hint at downbeat results.
As per the tool, visits to shopify.com and shopify.in were up 28.3% year-over-year during the reported quarter. The company’s website traffic jumped to 211.8 million unique visits from 165.1 million in the year-ago quarter.
The uptick can be attributed to a strong Black Friday and Cyber Monday week. Also, the launch of features, including Shopify Audiences, Shopify Collabs, integrated Twitter Shopping, and YouTube channels, likely attracted more customers.
What Is the Prediction for Shopify Stock?
On TipRanks, SHOP stock has a Moderate Buy consensus rating based on 10 Buys, 12 Holds, and 2 Sells. The average price target of $44.17 implies a downside potential of 17.27%. Shares have gained about 50% year-to-date.
Shopify has delivered an impressive performance despite facing several headwinds, such as a slowdown in the e-commerce business and a strengthening dollar, among others. Going forward, the company’s move to increase prices on their merchant subscription plans is expected to help boost top-line growth.
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