Shopify shares jump 17% as Q2 revenue surges 34% to $3.58 billion, prompting Barclays to raise its price target.
Shopify (NASDAQ:SHOP) rallied 17% after reporting Q2 revenue of $3.58 billion, up 33.7% year-over-year, and gross merchandise volume of $115.57 billion, a 32% increase. Operating income rose 67.7% to $488 million, while free cash flow reached $654 million at an 18% margin.
The company’s 11th consecutive quarter of 25%+ revenue growth outpaced Amazon’s 32x and Etsy’s 15x forward P/E multiples, though Shopify’s 62x multiple reflects its higher growth rate. Barclays raised its price target to $145 from $126, aligning with 24/7 Wall St.’s $145.91 target, which implies 1.16% upside from the current $144.24.
Analysts rated SHOP a hold, citing fair valuation after the post-earnings surge. Merchant Solutions revenue climbed 37% to $2.781 billion, reinforcing bullish sentiment for a potential breakout to $187.