Shopify Stock Gives Up Gains After Analyst

Shopify Inc. (SHOP) shares fell more than 3% during Monday’s session after Roth Capital downgraded the stock from Buy to Neutral. While analyst Darren Aftahi remains positive on the underlying trading outlook after the Unite conference and investor day, he believes the stock valuation may already be pricing in these bullish sentiments.

DA Davidson is much more optimistic about Shopify’s actions. Analyst Tom Forte raised his price target from $ 290 to.400 per share after the Unite conference and investor day, saying compliance, international expansion and retail efforts could help drive a high rate of sales growth for years to come. He maintains a Buy rating on the stock.

Shopify’s new compliance network enables merchants of all sizes to deliver their products quickly and cheaply. In addition to a network of logistics centers, the company is leveraging machine learning to ensure timely deliveries and lower shipping costs. The company also launched a new trading portal and point of sale system.

From a technical point of view, the stock fell towards the middle of its price channel after an initial move higher. The stock has climbed almost 90% after the bullish crossing of its 50 and 200 moving averages in February. The Relative Strength Index (RSI) moderated to 64.41, but the Moving Average Convergence Divergence (MACD) could see a bearish cross in the near term.

Traders should observe a lower extended movement towards trendline support at around $ 297.00 before a higher movement. If the stock breaks down from those levels, traders could see a move towards reaction highs of around $ 285.00. If the action is broken by channel resistance, traders could see a move to all-time highs, although consolidation seems likely at the moment.