Shopify (SHOP) Shows GMV Strength, Prompts Canaccord to Lift Price Target

Shopify Inc. (NASDAQ:SHOP) is among the most fantastic stocks every investor should pay attention to. On November 4, Canaccord analyst David Hynes reaffirmed his bullish view on the company, assigning a Buy rating and increasing his price target from $165 to $185. The analyst’s update follows the company’s Q3 results, which showed broad-based strength and came in ahead of expectations.

Shopify (SHOP) Shows GMV Strength, Prompts Canaccord to Lift Price Target

While the Monthly Recurring Revenue (MRR) growth has slowed, the analyst viewed it as in line with expectations, considering the weakness in last quarter’s MRR due to changes in the trial structure. On the other hand, the highlight of the results was the 32% year-over-year growth in Gross Merchandise Volume (GMV) to $92 billion, which came in substantially ahead of expectations, according to Hynes.

Meanwhile, with strong GMV growth, the company also saw a 32% increase in revenue to $2.84 billion. EPS came in at $0.34, which was modestly ahead of expectations. While North America remains the main driver, the company reports seeing strong momentum in international markets, with international GMV rising 41% in Q3 and gaining further market share in Europe.

For Q4, management expects revenue growth to be in the mid-to-high 20% range year-over-year, and the free cash flow margin to be slightly above that of Q3.

Shopify Inc. (NASDAQ:SHOP) provides a cloud-based commerce platform that enables merchants to build, operate, and scale online and offline stores. It offers tools for payments, marketing, fulfilment, and omnichannel retail.

While we acknowledge the risk and potential of SHOP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SHOP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.