Shopify significant price increases raise growth floor, says Oppenheimer

Oppenheimer analyst Ken Wong notes Shopify announced changes to 2023 pricing on its corporate blog. The company is raising the monthly price of Basic, Shopify, and Advanced by 33%, while annual subscriptions were more than doubled. Shopify Plus pricing was unchanged at $2,000. Existing merchants will be given a three-month grace period before new pricing goes into effect. The firm estimates an incremental 4 point uplift to growth in 2023 for the 8-month impact to the install base. Further, Oppenheimer believes most investors were feathering in 10%-15%, so it expects the 30%-plus increase will be well received. The firm has an Outperform rating on the shares with a price target of $45.