Shopify: Raising My Price Target On Accelerating Growth

Gary Alexander
31.44K Followers

Summary

  • Shopify's 2025 rally took a breather after the company reported Q4 results, despite a strong beat versus expectations.
  • The company achieved 31% y/y revenue growth (accelerating 5 points sequentially) and 26% y/y GMV growth (accelerating 2 points sequentially).
  • Shopify Pay adoption and fierce international growth continue to be major growth levers for Shopify.
  • I'm reiterating my buy rating with a raised $138 price target for Shopify.
Shopify sign on their headquarters building in Ottawa, Ontario, Canada

JHVEPhoto

Despite trade war fears and an uncertain macroeconomic picture, growth stocks have continued to surge in early 2025, but the trade-off is that investors have expected top-notch performance this earnings season. Mere earnings beats aren’t enough to keep a rally going; investors seem to

This article was written by

31.44K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SHOP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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