Is Shopify stock a buy? (April 2024)

Ahead of the company’s first quarter results, RBC analyst Paul Treiber remains bullish on Shopify (Shopify Stock Quote, Chart, News, Analysts, Financials NYSE:SHOP).

As reported by the Globe and Mail, Treiber April 22 maintained his “Outperform” rating and price target of (U.S.) $100.00 on SHOP.

Treiber said he expects good things from the upcoming quarterly report from Shopify, which is due May 8.

“Shopify is likely to report solid Q1 results and guide Q2 above consensus, in our view,” Treiber wrote. “Multiple data sources indicate strong uptake of Shopify Plus and POS. Additionally, U.S. Census and other data sources indicate healthy consumer e-commerce spending Q1. With likely strong Q1 revenue, we believe Q1 margins could also surprise to the upside. We believe Shopify is likely to sustain a premium valuation, given solid growth, improved profitability, and strong product execution.”

On February 13, SHOP reported its Q4, 2023 results. The company reported Net Income of $657-million on revenue of $2.14-billion.

“Two thousand twenty-three was an incredible year for both Shopify and our merchants,” said CEO Harley Finkelstein. “Our strong Q4 and annual results are a powerful testament to the progress we have made building fast, reliable and unified software for merchants of all sizes. As we look ahead to 2024, our focus remains on driving innovation in an ever-evolving commerce landscape, delivering products that will propel our merchants’ businesses forward, with the support of our world-class talent and our valued merchants and partners.”