An 8-Day Winning Streak Has Shopify Stock Up 17%
Shopify (SHOP) stock is on an 8-day winning streak, up 16.7% since the run began. That added about $30.8 billion to the company’s market value, which now stands at about $215.0 billion. The stock closed at $166.03 on Wednesday, October 7, 7.3% below its 52-week high of $179.01 and 74.0% above its low of $95.40.
The Streak Next To The S&P 500
Returns for SHOP and the S&P 500 over the streak and the periods around it, all ending Wednesday, October 7 and including dividends:
| Return Period | SHOP | S&P 500 |
|---|---|---|
| 1 Day | 1.0% | -0.2% |
| 8 Days (Current Streak) | 16.7% | 0.8% |
| 1 Month (21 Trading Days) | 23.8% | 1.8% |
| 3 Months (63 Trading Days) | 34.8% | 3.7% |
| Year To Date | 3.1% | 15.0% |
| 1 Year (252 Trading Days) | 0.9% | 17.1% |
Is This Move About Shopify Or The Market?
The market explains little of this: the S&P 500 gained 0.8% over the same 8 sessions, including dividends, against Shopify’s +16.7%. Over the past three months the stock is up 34.8%, a window that includes the streak; over the other 55 sessions of that window it was up 15.5%.
Is The Business Keeping Up With The Stock?
On the fundamentals, revenue grew 32.5% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; and its operating margin is 17.8%, versus a median of 21.7%. At least one of the last four quarters was a loss, so a price-to-earnings multiple would not be a meaningful yardstick here. The read is mixed: revenue growth above the median on one side, margins below the median on the other.
A climb like this is worth respecting, and worth testing. Our Guidance Momentum screen tracks the stocks whose companies just raised their own forward numbers.
One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.