The company is expected to report a gain of $0.97/share on $1.25 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $0.70/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals:
The company’s earnings and sales have been decelerating in recent quarters which does not bode well for this earnings report. Furthermore, the company is expected to earn $2.62 a share in 2022 which is 59% below $6.41 a share it earned in 2021.
A Closer Look At The Technicals:
The stock has plunged nearly 75% since its November 2021 record high. That means the stock is in a violent bear market and has a lot of technical damage that needs to be repaired. The bulls want to see the stock break above its declining 50 DMA line which has served as resistance for most of this year.
Pay Attention To How The Stock Reacts To The News,
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: Shopify has been featured in the FindLeadingStocks.com report.
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