Shopify Inc (NASDAQ:SHOP) shares are up on Thursday after the company reported upbeat second-quarter results.
Here are the key analyst takeaways:
- DA Davidson analyst Gil Luria reiterated a Buy rating, while raising the price target from $140 to $200.
- Cantor Fitzgerald analyst Deepak Mathivanan maintained a Neutral rating, while raising the price target from $127 to $145.
- Citizens JMP Securities analyst Andrew Boone reaffirmed a Market Outperform rating and price target of $185.
Check out other analyst stock ratings.
DA Davidson: Shopify’s revenues grew 34% year-on-year, 33% in constant currency terms, to $3.6 billion, beating consensus of $3.4 billion, Luria said in a note. GMV (gross merchandise value) grew 31% year-on-year to $115 billion, "driven by broad-based growth across merchandises, geographies, and sales channels," he added.
"Management noted that AI driven traffic and orders to Shopify stores tippled year over year, and new buyer orders from AI channels came in at twice the rate of other channels," the analyst wrote.
Management guided year-on-year revenue growth in the low thirties for the third quarter, versus consensus of around 27%, he further stated.
Cantor Fitzgerald: Shopify’s GMV growth remained strong despite tougher comps, Mathivanan said. While AI traffic remains small relative to the company’s overall GMV, conversion from AI search is 80% higher than traditional search, he added.
The analyst highlighted the following from the release:
- AI-driven traffic and orders increased more than 3x in the second quarter.
- Sidekick’s daily active merchants grew 3.6x, while daily sessions rose 4.8x.
- Payments volume grew 39% year-on-year, processing GMV of $78 billion.
- Payments was launched in the UAE during the quarter, while penetration in Europe increased.
Citizens JMP Securities: Shopify reported strong quarterly results, with GMV of $115.6 billion beating consensus by 3%, Bone said. This marked the second consecutive quarter of more than 30% growth in constat currency terms, and the company achieved this against a tougher comp than in the first quarter, he added.
Management guiding to third-quarter revenue growth in the "low-30s" range, as Shopify is witnessing "sustained elevated demand despite tougher comps and working from an increasingly large base as it is taking share of commerce," the analyst wrote. Shopify is winning share of AI shopping traffic and the momentum is likely to continue, he further noted.
SHOP Price Action: Shares of Shopify are up 2.07% to $147.23 at the time of publication on Thursday.
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