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Shopify News [Feb 19, 2023]

Written by Nick | Feb 18, 2023 6:40:09 PM

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:

1. EARNINGS SUMMARY
2. NO MORE LAYOFFS
3. 3RD PARTY PROTECTION
4. ANALYST CHANGES


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.

 

                   
 
2. NO MORE LAYOFFS

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.

 

 
3. 3RD PARTY PROTECTION

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.

 

          
 
4. ANALYST CHANGES
 
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  

 

              
 
THAT'S IT FOR THIS WEEK.

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.