Q: SHOP announced good earnings. I know call hasn't taken place yet but can you provide quick comment and what lies ahead for the stock over next 6 months. Was there anything really striking in the results that might serve as a big catalyst?
5i Research Answer:
SHOP investors are pleased (for the moment, anyway!) with higher than expected sales growth, guidance for +30% growth and the $2B share buyback announced. This has offset a slight miss on EPS. EPS of 48c missed estimates of 51c; revenue of $3.67B was 2% better than estimates. Gross merchandise volume was $123.8B, vs estimates $120.8B. Net cash is $5.2B. There was nothing hugely striking, but it is good to see that plus-30% growth is expected to continue. The buyback is of course positive. The catalyst frankly will likely just be 'relief' after the big stock decline and AI-fears. These results should support a decent recovery to the stock in the next three months. Six of course will depend on these forecasts being achieved.