Shares of Shopify Inc (NASDAQ:SHOP) tanked in early trading on Wednesday after it released first-quarter (Q1) results.
The company’s results indicated that its growth investments continue to yield results, according to DA Davidson.
The Shopify Analyst: Analyst Gil Luria reiterated a Buy rating, while slashing the price target from $195 to $140.
The Shopify Thesis: The company made a “good start” to 2026, with revenues growing 34% year-on-year in the first quarter and beating consensus by 2.7%, Luria said in the note.
The recent weakness in its stock presents a buying opportunity, he added.
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Shopify reported revenues of $3.17 billion, above consensus of $3.09 billion. The outperformance is in line with its average beat over the last eight quarters.
The company’s GMV (gross merchandise value) grew 35% …