Analysts react to Shopify earnings

Shares of Shopify Inc. were under pressure in Tuesday trading after the e-commerce giant reported quarterly results and cost projections that spooked investors, but analysts say the company is still headed in the right direction.

Ottawa-based Shopify saw its revenue rise 24 per cent to US$2.1 billion in the final quarter of 2023, beating the average estimate of $2.08 billion in Bloomberg’s analyst survey, while profit also beat expectations.

“The quarter itself was great,” Samad Samana, an analyst with Jefferies Group, told BNN Bloomberg in a Tuesday television interview.

“They beat on gross merchandise value (GMV), they beat on total revenue and they continue to deliver better profitability.”