Shopify trading down on ‘soft’ cash flow outlook, says TD Securities

TD Securities analyst Daniel Chan attributes the post-earnings pullback in shares of Shopify (SHOP) to the stock’s “lofty” valuation and “soft” free cash flow outlook. Despite continued strong seas growth, investors “have likely come to expect healthy beats as reflected in the valuation,” the analyst tells investors in a research note. TD has a Hold rating on Shopify shares. The stock in premarket trading is down 4% to $165.23.