Shopify Q4 results appear ‘strong’ on first look, says Jefferies

Jefferies analyst Samad Samana notes that Shopify (SHOP) Q4 gross merchandise volume of $94.5B and total revenue of $2.812B beat consensus, as did GAAP operating margin of 16.5% on revenue upside and cost controls. The Q1 outlook met consensus for revenue growth, but fell short on margins, notes the analyst, who adds that the “results were healthy and the guidance continues the trend of conservatism on margins.” Jefferies has a Hold rating and $110 price target on Shopify shares. Q4 was “a strong close to another good year,” according to the analyst, who views the pre-market reaction as the stock “hitting the wall of high expectations (along with a premium valuation) rather than a fundamental disappointment.”