Shares of Shopify (SHOP 0.55%) rose following the company's fourth-quarter results as it produced strong revenue growth. The stock of the e-commerce software platform is now up nearly 40% over the past year, as of this writing.However, the company could feel some pressure from potential tariffs. Let's examine the company's most recent results and guidance to see if now is a good time to buy the stock.Strong revenue growthFor the quarter, Shopify saw its revenue climb 31% to $2.81 billion. That handily beat ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SHOP, AMZN, BABA 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 w ...

I’m a retired Wall Street PM specializing in TMT; since kickstarting my career, I’ve spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of ‘08, and, more recently, with the AI boom. In one word, what I’d like my service to revolve around is momentum.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within th ...

Shares of Shopify Inc SHOP tanked in early trading on Wednesday, despite the company reporting a fourth-quarter revenue beat.Here are some key analyst takeaways.Piper Sandler analyst Clarke Jeffries reaffirmed a Neutral rating, while raising the price target from $94 to $104.Goldman Sachs analyst Gabriela Borges reiterated a Buy rating, while lifting the price target from $135 to $150.JPMorgan analyst Reginald Smith maintained an Overweight rating, while raising the price target from $121 to $124.Cantor Fit ...

Shopify (SHOP) reported fourth-quarter 2024 non-GAAP earnings of 44 cents per share, in line with the Zacks Consensus Estimate. The figure jumped 29.4% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues of $2.81 billion surpassed the Zacks Consensus Estimate by 3.26%. The top line soared 31.2% year over year.Following fourth-quarter 2024 results, SHOP shares increased 3.08% to close at $123.59 on Tuesday. Shopify shares have appreciated 37.6% in the trailing 12 mo ...

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 toWith 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 ...

Shopify President Harley Finkelstein highlighted the company’s fiscal performance in the fourth quarter of 2024, marking a solid finish to the year.“I’ve honestly never been more excited about what we achieved and how it’s positioning us for 2025,” Finkelstein said Tuesday (Feb. 11) during the company’s fourth-quarter earnings call. “2024 was one for the books and further solidified us as a leader in unified commerce. I’m especially proud to share that in the U.S. alone Shopify is now over 12% of the eComme ...

JP Morgan analyst Reginald L. Smith maintained an Overweight rating on Shopify Inc SHOP after the company released its quarterly print Tuesday.Fourth-quarter revenue increased 31% versus Smith’s 26% and the Street’s 27% estimates, driven by a 7 pt acceleration in Merchant Solutions (primarily payments) revenue.Gross margin contracted ~150bps from the prior year to 48.1%, a touch below Smith and the Street estimates (impacted by PayPal Holdings PYPL revenue recognition change).Also Read: Taiwan Semiconductor ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Financial Data and Key Metrics Changes - In 2024, Shopify achieved nearly $300 billion in GMV and $9 billion in revenue, representing a 2.5% increase in GMV and a 3x increase in revenue compared to 2020, with annual revenue growth of 26% and a free cash flow margin of 18% [11][12][17] - Q4 revenue grew by 31% year-over-year, with a free cash flow margin of 22%, marking a strong finish to the year [12][20] - Operating income surpassed $1 billion for the year, a significant increase from $269 million in 2021, with operating expenses reduced to 32% of revenues in Q4 [17][81] Business Line Data and Key Metrics Changes - Merchant Solutions revenue increased by 33% year-over-year, driven by GMV growth and increased penetration of Shopify Payments, which processed $61 billion in GMV in Q4, up 35% from last year [68][62] - Subscription Solutions revenue grew by 27% year-over-year, supported by an increase in the number of merchants on the platform [69] - B2B GMV grew by 132% in Q4, with a total increase of over 140% for the year, highlighting strong growth opportunities in this segment [49][50] Market Data and Key Metrics Changes - North American revenue increased by 23%, with the U.S. alone generating over $5.7 billion, while international regions outperformed with a 33% growth rate [15][16] - Shopify's market share in the U.S. e-commerce sector surpassed 12%, with significant growth in Europe and Japan [14][15] Company Strategy and Development Direction - Shopify aims to build a durable 100-year company focused on long-term merchant success, emphasizing product innovation and operational efficiency [22][56] - The company plans to continue expanding its reach across various merchant sizes and geographies, particularly in Europe and Japan, while enhancing its partner ecosystem [30][56] - A commitment to AI integration is central to Shopify's strategy, aiming to improve user experience and operational efficiency [54][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Shopify's market position and operational model, highlighting the company's ability to maintain profitability while investing in growth [22][60] - The focus for 2025 includes simplifying operations, embracing AI, and expanding market presence, with a disciplined approach to free cash flow margins [56][58][93] Other Important Information - Shopify processed over $1 trillion in cumulative GMV, with significant milestones achieved in customer engagement and product offerings [19][30] - The company has introduced various new features and products aimed at enhancing merchant capabilities and customer experiences [24][26] Q&A Session Summary Question: Free cash flow guidance for Q1 - Management indicated that free cash flow margins are expected to expand by approximately 200 basis points, maintaining a balance between profitability and future investments [96][100] Question: Merchant Solutions' take rate expectations - The take rate for Merchant Solutions was higher than expected, with continued strength anticipated in Q1, driven by the growth of payments and additional products [106][110] Question: Impact of de minimis exemption and tariffs - Management emphasized the importance of de minimis protections for small businesses and the company's efforts to support merchants in navigating tariffs [115][119] Question: Headcount growth outlook - Management believes that operational efficiencies will allow for modest headcount growth while continuing to expand the business [121][124] Question: International expansion investments - Management discussed ongoing investments in international markets, focusing on setup experts and direct marketing presence to enhance growth [132]