Shopify Inc. shares wobbled ahead of the company’s first quarter financial results on Tuesday morning. Revenue rose 68.3% to $214.34 million – beating consensus estimates by $12.17 million – while earnings per share of four cents beat consensus estimates by nine cents per share. Despite the strong revenue growth, the stock lost momentum and moved lower by Wednesday morning following the conference call.
Analysts remain largely bullish on the stock following the financial results. Piper Jaffray analysts called the pullback a buying opportunity and reiterated the firm’s Overweight rating and price target of $155 per share, while Baird analysts said that the strong quarter was overshadowed by a mix shift to merchant solutions and trimmed its price target to $150 from $158 per share. Meanwhile, Citron is concerned over Shopify’s exposure to President Trump’s policies. (See also: Facebook Woes Could Be Shopify’s Downfall: Analyst.)
Shopify shares have been volatile over the past few sessions, but traders will be closely watching these key support and reversal levels. …read more
Read more here: Will Shopify Stock Break Down From Key Support Levels?