Q: When is SHOP next reporting? I believe it's this week but not sure. In a previous question, the general expected numbers were 26c and 2.34b. What does 5i expect? What might result in SHOP beating numbers and conversely missing? Its getting beaten down today on fairly heavy volume (Tuesday late afternoon) and has been weak the past while. Is this just SHOP being volatile or could the market know something?
5i Research Answer:
SHOP reports pre-market May 8, tomorrow. We think Shopify's fiscal 1Q results may show a pull forward in demand as consumers made purchases ahead of tariffs. This may boost revenue somewhat and EPS slightly. BUT.....tariff concern might hurt guidance a bit as well for the next quarter. Tariffs are likely the biggest variable for a miss/beat. Consumer spending may be slowing and sentiment is hard to gauge. The stock is down $5 this week but it rose almost $18 from April 21 to May 02. For this stock, and in a volatile market, we would not consider the trading unusual. There is always some pre-earnings jitters with this one.