Shopify Gears Up For Q3 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

Shopify's Q3 Earnings Preview

Shopify is set to report its third-quarter earnings on October 26, 2023. Analysts are expecting the company to report earnings per share (EPS) of $1.28, on revenue of $1.63 billion. This would represent a year-over-year increase of 20% and 25%, respectively. Shopify has been a beneficiary of the e-commerce boom during the pandemic. In its most recent quarter, the company reported revenue growth of 22% and EPS growth of 47%. However, Shopify's growth is expected to moderate in the coming quarters as the pandemic subsides and consumers return to shopping in stores.

Wall Street's Most Accurate Analysts

Ahead of Shopify's Q3 earnings report, several Wall Street analysts have updated their forecasts for the company. Here is a summary of their most recent changes: * **KeyBanc Capital Markets:** Raised its price target from $50 to $55, while maintaining its "overweight" rating. * **RBC Capital Markets:** Raised its price target from $45 to $50, while maintaining its "outperform" rating. * **Credit Suisse:** Raised its price target from $40 to $45, while maintaining its "neutral" rating.

Factors to Watch

There are a number of factors that investors will be watching when Shopify reports its Q3 earnings. These include: * **Revenue growth:** Shopify's revenue growth is expected to moderate in the coming quarters. Investors will be looking for any signs that the company is losing market share to competitors. * **Gross merchandise volume (GMV):** GMV is a measure of the total value of goods sold on Shopify's platform. GMV growth is a key indicator of Shopify's underlying business health. * **Subscription revenue:** Shopify's subscription revenue is a recurring source of revenue for the company. Investors will be looking for any signs that Shopify is losing subscribers. * **Profitability:** Shopify's profitability is expected to improve in the coming quarters as the company benefits from scale. Investors will be looking for any signs that Shopify is able to control its costs.

Conclusion

Shopify is a leading e-commerce platform that has benefited from the pandemic-driven surge in online shopping. However, the company's growth is expected to moderate in the coming quarters as the pandemic subsides. Investors will be looking for any signs that Shopify is losing market share, losing subscribers, or facing margin pressure.