On May 28, Shopify rose 3.43% in regular trading, trading at $110.92/share, with trading volume of approximately $135 million. The stock extended its recovery rally as funds continued to flow back into the name following a sustained post-earnings correction.
On the news front, Shopify reported strong Q1 results on May 5, with revenue growing 34% year-over-year to $3.17 billion, exceeding the consensus estimate of $3.09 billion. Adjusted EPS of $0.36 beat expectations by 12.5%, while GMV surpassed $100 billion for the first time in a single quarter. However, the company's Q2 revenue growth guidance of approximately 30% signaled a clear deceleration from Q1, triggering a post-earnings selloff exceeding 7%. The stock had accumulated roughly 20% in year-to-date losses heading into the report.
Following the earnings release, Barclays cut its target price from $130 to $126 maintaining an Equal Weight rating, while Citi lowered its target from $163 to $156 but maintained a Buy rating. Additionally, Wedbush removed Shopify from its closely watched AI 30 Winners list. After consecutive sessions of adjustment, valuation pressure has materially eased, prompting a repricing of the company's fundamental resilience and driving continued oversold recovery.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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