Shopify (SHOP) investors saw the stock closing -10.41% the last 5 days, which means it sits at +22.23% YTD.
Let's go through Shopify news for this week together:
LEGEND: Positive News | Neutral News | Negative News
1. EARNINGS SUMMARY
Shopify announced their Q4 2022 results. Here's the summary:
- Revenue $1.73B BEAT increased 25.4% YoY
- GAAP EPS -$0.49 MISS by $0.32
- GMV was over $60B in Q4
- Guidance revenue growth 16-19% YoY
Shopify is another growth stock that has seen big deceleration in 2022 with growth. They are expecting growth for revenue next quarter to be under 20% - which took investors by surprise.
They also touch on expenses, including SBC (stock-based compensation) and investors were overall not too pleased with how much cash the company plans to burn in 2023.
As a result the stock did see a big selloff this week but is still green YTD.
Shopify President has made it clear that they do not plan to do more layoffs.
This is great news for employees - but not so much for investors who want to see costs continue to reduce (so that Shopify can turn a GAAP profit sooner than later). The company expects to keep headcount relatively flat - so not many new hires either for the foreseeable future.
This slowdown in e-commerce is impacting all companies in this space and Shopify is not immune to this.
Rewind has announced a protection suite for Shopify merchants.
This new suite will allow merchants to protect their stores from downtime, threats, mistakes, or anything that could cause an interruption to doing business. It's a core security feature that Shopify should natively implement at some point because any downtime could be significant for merchants on their platform.
| RATING | PRICE TARGET | FIRM | |
| Neutral | $54 > $50 | Citigroup | |
| Hold | $40 > $45 | Canaccord Genuity | |
| Neutral | $36 > $40 | Goldman Sachs | |
| Outperform | $55 > $65 | RBC Capital | |
| Neutral | $34 > $40 | Credit Suisse | |
| Outperform | $45 > $65 | Oppenheimer | |
| Outperform | $45 > $55 | Baird | |
| Overweight | $46 > $56 | Wells Fargo | |
| Neutral | $36 > $45 | Piper Sandler | |
| Overweight | $45 > $55 | Keybanc | |
| Hold | $48.3 | Benchmark |
We look forward to spending a few minutes with you next Sunday for some new Shopify news!
Disclosure: I am not a Shopify (SHOP) shareholder and I am a Global-E (GLBE) shareholder at the time of publishing.
