Equity Clock

Arithmetic Average Seasonal Chart

Geometric Average Seasonal Chart

SHOP.TO Relative to the S&P 500

SHOP.TO Relative to the Sector

% of Revenue Generated in Each Quarter

% of Free Cash Flow Generated in Each Quarter

% of Net Income Generated in Each Quarter

Seasonal Chart Analysis

Analysis of the Shopify Inc. (TSE:SHOP.TO) seasonal charts above shows that a Buy Date of May 10 and a Sell Date of September 15 has resulted in a geometric average return of 13.89% above the benchmark rate of the S&P 500 Total Return Index over the past 9 years. This seasonal timeframe has shown positive results compared to the benchmark in 8 of those periods. This is a very good rate of success, but the return underperforms the relative buy-and-hold performance of the stock over the past 9 years by an average of 18.54% per year.

The seasonal timeframe correlates Poorly with the period of seasonal strength for the Technology sector, which runs from October 9 to February 15. The seasonal chart for the broad sector is available via the following link: Technology Sector Seasonal Chart.

A word of caution: Only 9 years of data is available for shares of SHOP.TO, perhaps insufficient to create a seasonal profile that accurately gauges the seasonal tendencies influencing the investment. Ideally, while 20 years is preferred, at least 10 years of data is required to perform a seasonal analysis that is considered to be reliable for future seasonal periods.

Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company’s website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.

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Stocks mentioned in this post: SHOP.TO