• SHOP stock crossed above the $40 resistance level on Thursday.
  • Wednesday saw Shopify shares advance 12%, earnings to be released next week.
  • A new partnership with YouTube content creators has the market feeling optimistic.

Shopify (SHOP) stock is not giving back any of its 12% spike from Wednesday. early in Thursday's session, SHOP shares have advanced another 4.1% to $40.08. This price level is key since the market has kept SHOP from closing above $40 since early May. A close above $40 would then seem to signal that Shopify stock is back in an uptrend. The advanced is doubly impressive on Thursday since all three major US indices – the S&P 500, Dow, Nasdaq – are pulling back.

Also readAmazon Stock Deep Dive: AMZN price target at $106 with near-term risks offset by long-term growth

Shopify Stock News: YouTube partnership creates large stepping stone for expansion

Shopify announced a new partnership with YouTube on Wednesday that led to the 12% spike. The agreement allows YouTube content creators to benefit by directly selling the products they mention in their videos. Shopify is essentially streamlining the e-commerce process by allowing YouTubers to directly market these products through YouTube rather than requiring consumers to leave the platform for another site. Buyers can checkout directly within YouTube, and Shopify will take care of the payment processing and fulfillment via content creators' Shopify stores.

"Commerce today is multichannel, and YouTube is one of the most influential channels on the planet," said Kaz Nejatian, VP of Product at Shopify. "Shopify's new YouTube integration will fundamentally change what opportunity looks like for independent brands in the creator economy.”

Sales of beauty products, electronics and fashion are thought to be big winners of this partnership. The news has also led some analysts to grow more optimistic about Shopify's earnings release next week on July 27. The news has mostly been negative during Q2. Of the 26 analysts who submitted earnings revisions in the past 90 days, 25 have made downward revisions, but recent revisions have been better than those earlier in the cycle. Analysts are expecting just $0.03 in adjusted earnings per share on revenue of $1.34 billion, because the major competitor to Amazon (AMZN) has launched a steep capex strategy of investing in the warehouse fulfillment segment rather than remaining a high-margin software business. Though both notes to investors were cautious, both Wells Fargo and Piper Sandler reiterated Overweight ratings on Shopify stock on Monday, July 18. Wells Fargo, however, lowered its price target from $55 to $40.

Shopify Stock Forecast: A move to $44 is likely soon

Shopify stock is uncertain to hold $40 on Thursday, but holding that price level is key. Only once since May 5 has SHOP stock closed above $40 and even then it was just $40.25. That session, May 13, also quickly lost its footing and sold off the following session. If $40 fails to hold, then SHOP will likely trend back toward support at $30, which it has used on four separate occasions in the past two months.

SHOP stock target for bulls is $44, caused by the gap in price on May 5. Markets tend to like to fill these gaps, and bulls have been trying to do so for three months now. With optimism spreading ahead of the July 27 earnings call, expect $44 to be reached before then. The Moving Average Convergence Divergence (MACD) indicator also recrossed in a bullish manner this week and provides more reason for optimism.

SHOP daily chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD falls toward 0.9600 amid renewed dollar strength

EUR/USD falls toward 0.9600 amid renewed dollar strength

EUR/USD has turned south and declined toward 0.9600 in the second half of the day on Monday. A sharp decline witnessed in the GBP/USD pair and the souring market mood provided a boost to the dollar, lifting the US Dollar Index back above 114.00. 

EUR/USD News

GBP/USD falls below 1.0700 following BoE statement

GBP/USD falls below 1.0700 following BoE statement

GBP/USD came under renewed bearish pressure and slumped below 1.0700 during the American trading hours. In a statement published on Monday, the Bank of England said that they welcome the government's commitment to sustainable economic growth, triggering another GBP selloff.

GBP/USD News

Gold could soon challenge the $1,600 level

Gold could soon challenge the $1,600 level

Demand for the dollar continued at the beginning of the week, resulting in XAUUSD plummeting to $1,626.67, its lowest since April 2020. Concerns about potential recessions undermined the dismal market’s mood, pushing the greenback higher despite its extreme overbought conditions.

Gold News

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin price has been devoid of volatility for the last week and has been in a tight consolidation without directional bias whatsoever. This range bound move has formed a triangle pattern which could break either way. 

Read more

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

The S&P 500 index lost 4.1% last week and left traders melancholy with another week to go in this dreadful September. The S&P 500 index is down 6.6% so far in the month that is already known for poor performance, and most seem to think the pain will continue. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures