Jim Cramer just reaffirmed his bullish stance on Shopify Inc. (NYSE:SHOP), and the timing couldn’t be more perfect. The stock has just formed a Golden Cross, a powerful technical indicator that suggests brighter days ahead for the e-commerce giant.
For those unfamiliar, a Golden Cross occurs when a stock’s short-term moving average crosses above its long-term moving average—a classic sign that the bulls are ready to charge.
In a recent segment on CNBC’s Mad Money, Cramer didn’t mince words. “I think Shopify is at a great level to buy. Harvey Finkelstein is doing a terrific job, and the stock should be perfect,” he said.
This comes as no surprise, given Shopify’s strong performance. Over the past month, the stock has soared 20.56%; year-to-date it’s up 11.26%. But what’s even more impressive is its 53.50% rise in the past year.
With Shopify’s stock price sitting at $80.86, it’s comfortably above its 50-day simple moving average of $72.34 and its 200-day moving average of $71.82. Combined with its eight-day and 20-day averages, these indicators also show bullish signals and strongly suggest that the momentum is on Shopify’s side.
Even Wall Street is heaping praise on Shopify. Goldman Sachs recently upgraded Shopify to a Buy, while JPMorgan and BofA have also endorsed the stock, citing its product breadth, ease of use, and scale as key advantages.
Shopify’s Q2 Knocked It Out of the Park
If you’re wondering why analysts and investors are so bullish, look at Shopify’s stunning Q2 results. Free cash flow skyrocketed by 240% to $333 million, while revenue jumped by 21% year-over-year. Even though GMV growth slowed slightly, the company still raked in a massive $67.2 billion in gross merchandise volume.
With third-quarter revenue expected to grow in the low-to-mid 20% range, it’s no wonder Shopify is being touted as a “best of breed” stock. Sure, the forward P/E ratio is hovering near 60, but with EPS growth expectations of 43%, Shopify’s lofty valuation looks justified.
Cramer + Golden Cross = Winning Combination For Shopify Stock
Cramer’s bullish call, backed by Shopify’s Golden Cross and strong fundamentals, could be a winning combination.
The stock’s technical setup, combined with Wall Street’s vote of confidence, makes Shopify a name to watch as we head into 2025.
Investors looking for the next big move might find it here. Shopify isn’t just crossing averages—it’s crossing into new territory.
