Shopify's strong earnings lead to raised fair value estimate and optimistic guidance

From Morningstar: 2024-08-08 12:06:00

Shopify’s fair value estimate has been raised to USD 80 per share, showing strong results and guidance. Canadian shares’ fair value estimate rises to C$110. Morningstar Rating is 3 stars, Economic Moat is wide, Fair Value Estimate is C$110, and Uncertainty Rating is very high. Revenue strength in the quarter led to estimates being moved higher. GMV grew 22% year over year to $67.2 billion, with gross payment volume at $41.1 billion. Enterprise customers are adopting Shopify Payments, and monthly recurring revenue was up 25% year over year. Marketing investments are showing return, with an increase in non-GAAP operating margin to 14.6% and strong free cash flow. Third-quarter guidance surpassed expectations, with improved revenue growth and profitability projections. Management remains optimistic about the firm’s potential growth despite macro conditions.



Read more at Morningstar: Shopify Earnings: Merchants Flocking to Platform in…