Citi’s Tyler Radke echoed these sentiments, stating that the third quarter demonstrated Shopify’s capabilities in revenue and profitability.
Radke added, “Shopify was able to post the strong quarterly numbers even as the macroeconomic backdrop remains shaky.” He highlighted Shopify’s gains in international markets, including Europe, which he described as “choppy from an economic perspective.”
Radke viewed these gains as evidence of Shopify’s competitive differentiation.
Radke also focused on Shopify’s merchant growth, citing an increase in new merchant additions. He pointed out that Shopify recently reduced its free trial period for new merchants from 90 to 45 days, which has accelerated the onboarding of paying customers.
In Toronto on Tuesday, Shopify shares were trading above $157, their highest point since 2022 and exceeding Radke’s and Samana’s current price targets. Both analysts suggested that these targets may be adjusted upwards in response to Shopify’s strong quarterly performance.
