Jefferies says Shopify lack of margin upside may keep shares from pushing higher

Jefferies analyst Samad Samana notes that Shopify’s Q4 gross merchandise volume, or GMV, of $75.1B and total revenue beat consensus and the revenue growth outlook for Q1 came in “much better than we expected,” suggesting Shopify continues to gain market share despite slowing consumer spending. However, the firm believes the implied operating expense view was “much higher than investors anticipated” and contends that the valuation and lack of margin upside “may keep it from pushing higher today.” The firm has a Hold rating and $80 price target on Shopify shares.