Shopify Class A Stock Alpha and Beta Analysis
| SHOP Stock | USD 104.34 12.57 13.70% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Shopify Class A. It also helps investors analyze the systematic and unsystematic risks associated with investing in Shopify over a specified time horizon. Remember, high Shopify's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Shopify's market risk premium analysis include:
Beta 2.43 | Alpha 0.11 | Risk 5.17 | Sharpe Ratio (0.02) | Expected Return (0.10) |
Shopify Quarterly Cash And Equivalents |
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Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Check out Shopify Backtesting, Shopify Valuation, Shopify Correlation, Shopify Hype Analysis, Shopify Volatility, Shopify History and analyze Shopify Performance. Shopify Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Shopify market risk premium is the additional return an investor will receive from holding Shopify long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Shopify. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Shopify's performance over market.| α | 0.11 | β | 2.43 |
Shopify expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Shopify's Buy-and-hold return. Our buy-and-hold chart shows how Shopify performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Shopify Market Price Analysis
Market price analysis indicators help investors to evaluate how Shopify stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Shopify shares will generate the highest return on investment. By understating and applying Shopify stock market price indicators, traders can identify Shopify position entry and exit signals to maximize returns.
Shopify Return and Market Media
The median price of Shopify for the period between Wed, Feb 12, 2025 and Tue, May 13, 2025 is 98.57 with a coefficient of variation of 13.38. The daily time series for the period is distributed with a sample standard deviation of 13.46, arithmetic mean of 100.59, and mean deviation of 10.69. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Seaport downgrades PayPal and Bill.com ahead of Q1 earnings on macro concerns | 04/17/2025 |
2 | VoPay Launches Embedded Cross-Border Solution A Shopify for Global Payments | 04/23/2025 |
3 | PayPal reports first-quarter earnings beat, maintains forecast | 04/29/2025 |
4 | San Chan Launches Worlds First Web2-Web3 Shopify-Solana Integration, Transforming Fan Merch into Charity Powerhouse | 05/05/2025 |
5 | Jim Cramer on Shopify Shopify Is More Than a Poor Mans Amazon | 05/06/2025 |
6 | Pitney Bowes Q1 Earnings Surpass Estimates | 05/07/2025 |
7 | Taiwans China Airlines Commits To Boeing After Mainland China Distances | 05/08/2025 |
8 | Stifel Adjusts Price Target for Shopify , Highlights Tariff Concerns SHOP Stock News | 05/09/2025 |
About Shopify Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Shopify or other stocks. Alpha measures the amount that position in Shopify Class A has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
| 2022 | 2023 | 2024 | 2025 (projected) | Days Sales Outstanding | 57.68 | 59.71 | 10.36 | 9.84 | PTB Ratio | 5.33 | 11.01 | 11.91 | 15.36 |
Shopify Upcoming Company Events
As portrayed in its financial statements, the presentation of Shopify's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Shopify's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Shopify's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Shopify. Please utilize our Beneish M Score to check the likelihood of Shopify's management manipulating its earnings.
| 13th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 13th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
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Additional Tools for Shopify Stock Analysis
When running Shopify's price analysis, check to measure Shopify's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Shopify is operating at the current time. Most of Shopify's value examination focuses on studying past and present price action to predict the probability of Shopify's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Shopify's price. Additionally, you may evaluate how the addition of Shopify to your portfolios can decrease your overall portfolio volatility.