Jefferies expects Shopify shares to rally after Q2 beat

Jefferies notes that Shopify’s Q2 GMV of $67.3B, revenue of $2.05B and MRR of $169M all beat consensus and says the operating margin “stole the show,” sharply beating consensus. The Q3 outlook for growth and margins was better than expected as well as the company’s Q2 report showed the topline is “more resilient than feared” and management is “more committed to margin expansion than expected.” The firm, which expects shares to rally given the recent selloff, has a Hold rating and $80 price target on Shopify shares.