Jim Cramer has once again voiced his optimistic outlook on Shopify Inc. SHOP, and the timing couldn’t be more serendipitous. The stock recently witnessed the formation of a Golden Cross, a robust technical signal indicating a sunny forecast for the e-commerce behemoth.
For the uninitiated, a Golden Cross emerges when a stock’s short-term moving average eclipses its long-term moving average—a classic cue that the bulls are preparing to make a charge.
Chart created using Benzinga Pro
During a recent segment on CNBC’s Mad Money, Cramer left no room for doubt. “I think Shopify is at a great level to buy. Harvey Finkelstein is doing a terrific job, and the stock should be perfect,” he confidently asserted.
Shopify has been delivering a stellar performance. In the last month alone, the stock has surged by 20.56%; year-to-date it’s up by 11.26%. However, the real showstopper is its exceptional 53.50% ascent over the past year.
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Shopify Ascends with a Golden Cross
Traders and analysts alike are abuzz about Shopify’s remarkable stock trajectory.
Chart created using Benzinga Pro
With Shopify’s stock price comfortably perched at $80.86, it confidently eclipses its 50-day simple moving average of $72.34 and its 200-day moving average of $71.82. Coupled with its eight-day and 20-day averages, these metrics collectively signal bullish trends and strongly advocate for Shopify’s momentum.
Even the titan of Wall Street showers accolades on Shopify. Goldman Sachs recently elevated Shopify to a Buy rating, while JPMorgan and BofA have also voiced their support, citing its expansive product array, user-friendliness, and scale as standout attributes.
Shopify’s Q2 Triumph
Delve into Shopify’s stunning Q2 performance, and the enthusiasm among analysts and investors becomes crystal clear. Free cash flow catapulted by a staggering 240% to $333 million, while revenue surged by 21% year-over-year. Despite a slight easing in GMV growth, the company boasts an impressive $67.2 billion in gross merchandise volume.
With third-quarter revenue anticipated to scale the low-to-mid 20% range, Shopify unquestionably stands out as a “best of breed” stock. Sure, the forward P/E ratio looms at nearly 60, but with an expected EPS growth of 43%, Shopify’s premium valuation seems completely warranted.
Cramer + Golden Cross = Shopify Stock Triumph
The symbiotic relationship between Cramer’s bullish prediction, combined with Shopify’s Golden Cross and robust fundamentals, appears poised for triumph.
Given the stock’s technical configuration and the resounding vote of confidence from Wall Street analysts, Shopify emerges as a standout contender as we journey into 2025.
Investors seeking the next big breakthrough might discover it right here. Shopify isn’t just converging averages—it’s pioneering into uncharted territories.
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