SHOP - Shopify Q1: The Knife Needs More Time To Settle
2024-05-24 14:59:29 ET
Summary
- Shopify Inc. stock fell over 20% in one month following its Q1 earnings report.
- The company's revenue and earnings exceeded expectations, but the muted growth guidance overshadowed the positive results.
- Despite the price correction, Shopify stock is still trading at a P/E of 59x.
- To me, the high P/E implies the growth slowdown is only temporary.
- I am very skeptical about this assumption given the competition and cost pressure Shopify Inc. faces.
SHOP stock fell 20%+ in one month
Shopify Inc. ( SHOP ) recently released its 2024 Q1 earnings report . The results were solid, with both revenue and earnings exceeding market expectations. To wit, its non-GAAP EPS came in at $0.20 per share, beating market consensus slightly by $0.03. Total revenue came in at $1.86B, again beating market consensus by a small margin of $10M....
Shopify Q1: The Knife Needs More Time To Settle