Piper Sandler Cuts Shopify Target to $150, Shares Plunge on $581M Loss
Piper Sandler cut Shopify’s price target to $150, implying 41.9% upside, after shares plunged 16.4% on a $581 million net loss and a 55% rise in losses to $116 million. The company posted revenue up 34% to $3.17 billion and GMV topped $100 billion but offered high-twenties percent growth guidance.
1. Piper Sandler Lowers Price Target to $150
Piper Sandler analyst James Callahan reduced Shopify’s price target to $150, reflecting a more conservative valuation after shares dropped 16.4%. The downgrade was driven by a GAAP net loss of $581 million and a 55% jump in transaction and loan losses to $116 million.
2. Strong Top-Line Growth in Q1
Shopify delivered first-quarter revenue of $3.17 billion, up 34% year-over-year, and GMV surpassed $100 billion. Adjusted earnings of $0.36 per share beat estimates, and free cash flow rose to $476 million, highlighting robust platform momentum.
3. Cautious High-Twenties Growth Guidance
Management guided second-quarter revenue growth in the high-twenties percent range with mid-twenties percent gross profit dollar gains, signaling a tempered outlook. This restrained forecast, combined with rising losses, weighed on sentiment and amplified the share decline.