What is Shopify Market Cap? Simple Analysis

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Shopify Inc.’s market cap was $53.74B at the last market close. This is its share price of $426.82 multiplied with its outstanding shares number, 125.90M. SHOP’s shareholders, being large-cap companies, are typically less at risk than those of smaller and mid-cap businesses.

Market Capitalization measures the company’s size. It is the sum of the company’s share prices and the outstanding shares. Large market cap companies are stable and good long-term investments. Although small market cap companies are more likely to grow faster and deliver higher returns, stockholders who own them are more vulnerable to risk.

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Market cap is the market value for the entire company. It is the sum of the share price and the number of shares outstanding (EOP). Shopify’s December 2021 quarter share price was $1377.39. Shopify’s Shares Outstanding for the quarter ended Dec. 2021 were 126 Mil. Shopify’s Dec. 2021 quarter market cap was $173 409 Mil.

Shopify’s quarterly market capital decreased from Jun. 2021 ($182,276 Million) to Sep. 2020 ($170.252 Mill), but then rose from Sep. 2021 ($170.252 Mil), to Dec. 2021 (173,409 Mil).

Shopify’s annual market capital increased from December 2019 to Dec. 2020 ($46,290 Mil), and from Dec. 2020 to Dec. 2021 ($138,697 Mill) and from Dec. 2020 to Dec. 2021 (173,409 Mill).

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The theoretical takeover price is called Enterprise Value. It is more comprehensive that market capitalization (marketcap), which only includes common stock. The market capitalization plus debt, minority interest and preferred shares is the Enterprise Value. This figure does not include total cash or cash equivalents. Shopify’s Enterprise Valuation for Today is $47.455 Mil.

Shopify Market Cap Historical Information

Below is a chart showing the historical trend of Shopify’s Market Cap.

* Operating Data Section: All numbers are indicated with the unit behind each term. All currency-related amounts are in USD.

* Other sections: All numbers are shown in millions, except per share, ratio and percentage. All currency-related amounts are shown in the associated stock exchange currency.

Shopify market capital

What is the current Shopify valuation? Shopify’s core metrics such as current ratings are included in the valuation analysis module. This helps investors identify stocks that are trading at or above their actual value.

What’s market cap? Why is it important?

Other characteristics of a company are also included in market capitalization. Market capitalization is more reliable than other metrics such as market price per share because it considers not only the stock’s actual value but also the number and willingness of investors to invest in it.

Market Capitalization is a measure of the company’s total value. It is calculated by their stock price multiplied with the outstanding shares. This measure is useful because it provides an indication of the company’s size and how it has changed over time. It would be sensible to compare companies with similar market capitalizations, as factors such as market share, economies-of-scale, and business models, would all be comparable when comparing companies.

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Chart and historical market cap data for Shopify from 2013-2021. Market capitalization, also known as market value, is the most common method to measure the size of publicly traded companies. It is calculated by adding the current stock price to the number of outstanding shares. The Shopify market capitalization as of April 29, 2022 was $53.74B.

Shopify is growing rapidly. Shopify is a powerful platform that’s easy to use and features rich. This has made it the number one choice for many who are considering opening online shops. Shopify’s revenue for 2020 could also be attributed to the rise in entrepreneurship after the pandemic.

The HelpCenter app team has analysed the top global publicly traded companies based on market capitalization. Shopify (SHOP’s) market cap is $183.04 billion as of the time of writing.

The company’s value has now exceeded such brands as Wells Fargo, (WFC), UPS (UPS), and McDonald’s (MCD), which currently have a market capital of $172.57billion. Canadian e-commerce giant BHP Group (BHP), Texas Instruments, Accenture (ACN) and many others now rank higher than the company’s market cap of $172.57 billion. However, its stock price growth has remained steady.

Shopify prospers as new sellers join the platform

Although the e-commerce market has grown steadily over the years, it saw a spike when the pandemic struck. Shopify was born out of social distancing, remote work and job losses.

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Shopify’s gross merchandise value (GMV), rose 46% to $17.4 Billion in May 2020.

Shopify has seen a surge in online shopping and Shopify merchants have started to thrive. Shopify is now reaping the benefits of this ecommerce boom. Shopify reported Q4 2020 revenue of $977.7 millions, which is 94% more than the same quarter in 2019. Shopify’s annual revenue grew 86% to $2.929 billion at the end 2020.

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Amy Shapero (Shopify’s CFO) stated that “our fourth-quarter results capped an outstanding 2020, thanks for the success of our merchants .” Shopify was ready to ship the features our merchants required during the pandemic, because we had invested over several years in an early future with online commerce.

According to the HelpCenter survey, 37% of Shopify store owners experienced an increase in sales and revenue of at least 40% after the COVID-19 outbreak.

22.4% of respondents to the survey reported that they were able to increase their revenue by as much as 60%. Additionally, more than 55% of the respondents reported positive changes in their sales due to the pandemic. Only 12% reported that their revenue increased by at least 80%.

Shopify is here to stay

Shopify has moved up by more than 10 places in the global ranking companies based on their market capitalization over the past trading week. This surpasses Wells Fargo (down -2.43% at time of writing) as well as McDonald’s (-1.82%). It has also left behind giants like Philip Morris (market capitalization of $155.07B), Volkswagen ($153.17B), Shell ($152.17B), etc.

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E-commerce sales are expected continue to grow at the same rate as before the pandemic. Consumer behavior has changed significantly. Shopify is second most popular app after music apps, with 78% of global users already using it. Shopify is likely to continue to be a magnet for businesses looking to go online. It offers an affordable, scalable and easy-to-use solution that’s highly customizable.

Shopify continues to improve the functionality of its ecommerce stores. Shopify has been a leader in helping small businesses adapt to the new realities. Already, the e-commerce giant has made changes such as offering gift cards to all sellers, curbside pickups, and introducing a consumer-facing shopping assistant app.

Shopify also invested $350 Million US Dollars in Stripe, a payment processing company that allows online businesses to accept and manage payments.

These improvements continue to help merchants “compete in any retail environment” and engage directly with customers wherever they’re located. This not only makes it easier to run an online store but also improves the customer experience.