• Stock Name: Shopify (SHOP)
• Recommendation Price: $68–$69
• Target Price: $90
• Stop Loss Price: $61

■ Investment Points

• 2Q Earnings Summary: Revenue $2 billion (+21% YoY, +25% excluding logistics business sale), Operating Income $240 million (swing to profit), Net Income $170 million (swing to profit)

• Cumulative Transaction Volume Surpasses $1 Trillion: 2Q Gross Merchandise Volume (GMV) $67.2 billion (+22%), with European GMV up 32% (achieving over 30% growth for the fifth consecutive quarter). Cumulative GMV surpassed $1 trillion, with offline business exceeding $100 billion. Monthly Recurring Revenue (MRR) $169 million (+25%).

• Revenue by Segment: Merchant Solutions revenue increased 19% to $1.48 billion, Subscription Solutions revenue increased 27% to $560 million.

• Growth of Shopify Payments and Shop Pay: Shopify Payments reached a revenue penetration rate of 61%, and Shop Pay processed $16 billion in GMV, up 45% YoY. These payment solutions play a crucial role in the Shopify ecosystem and contribute to revenue growth.

• 3Q Guidance: Revenue expected to grow at a low to mid-20% YoY rate, with gross profit margin expected to increase by 50 basis points compared to 2Q.

• Stock Still Undervalued: Despite a 26% rise in stock price since the announcement of better-than-expected 2Q earnings, the stock remains undervalued considering its future growth potential.

■ Expected Earnings

• 2024: Revenue $8.5 billion (+21%), EPS $0.34 (+238%)
• 2025: Revenue $10.3 billion (+20%), EPS $0.93 (+175%)
• 2026: Revenue $12.6 billion (+22%), EPS $1.31 (+42%)

■ Stock Analysis
Overall score of 69, ranking 601st out of all listed companies in the U.S., in the top 10% of high-quality stocks.

• Future Growth: 80
• Monopoly Power: 30
• Financial Stability: 100
• Profitability: 60
• Cash Liquidity: 75

■ Company Overview

• E-commerce platform providing services to operate online stores
• Market Capitalization: $88.1 billion, PER: 69.2x, PBR: 9.6x, ROE: 14.4%
• Revenue by Business Segment: Merchant Solutions (74%), Subscription Solutions (26%)
• Revenue by Region: U.S. (66%), EMEA (18%), APAC (10%), Canada (5%), Others (1%)

■ Chart Analysis

• Recent 6-month Stock Price Performance: -23.61%

Recent Stock Price Trend

■ Stock News

• 2024-05-08: 1Q Earnings Announcement
• 2024-06-10: Acquisition of Slack Competitor 'Thread'
• 2024-06-24: Partnership with Target to Expand E-commerce Support
• 2024-06-25: Early Access Launch of AI Chatbot 'Sidekick'
• 2024-08-07: 2Q Earnings Announcement

■ Dividend

• No recent dividend payments