Shopify Stock Slides on Data Breach Buzz

The company assured that it is not technical vulnerability on their part

Assistant Editor
Sep 23, 2020 at 10:09 AM
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The shares of Shopify Inc (NYSE:SHOP) are lower this morning after a data breach last night, down 1.2% at $943.01 at last check. A spokesperson assured that it is not a technical vulnerability on Shopify's end, as two "rogue members" of the company engaged in the information seeking that resulted in records of less than 200 merchants. Complete payment cards or financial records were not in play, and data included basic contact information and purchase history. 

Up 135.5% year-to-date, Shopify stock started September off with a record high of $1,146.91 on Sept. 1. Although SHOP has since taken a 11.7% haircut this month, the shares' 120-day moving average has stepped up as support.

On the analyst front, 15 out of the 26 in coverage sport a tepid "hold" rating on the e-commerce platform, so there's definitely upgrade potential in the event of another run at record highs.

Calls have been popular in the options pits. This is per SHOP's 50-day call/put volume ratio of 1.51 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 72% of readings from the past year, meaning long calls are being picked up at a faster-than-usual rate.  

Lastly, options look like a decent way to go when weighing on SHOP's next move, as it is currently seeing attractively priced premiums. The stock's Schaeffer's Volatility Index (SVI) of 56% sits higher than 19% of readings in its annual range, suggesting short-term options are pricing in relatively low volatility expectations.

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