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Shopify Stock Volatile After Earnings

The e-commerce company's top-line beat is facing off with lackluster guidance

Managing Editor
Feb 11, 2025 at 10:07 AM
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Shopify Inc (NYSE:SHOP) stock is down 2% to trade at $124.63 this morning, paring an earlier push higher. The e-commerce giant reported fourth-quarter earnings and revenue that exceeded expectations, but the top-line beat is being overshadowed by first-quarter 2025 guidance that fell short of estimates.

SHOP hit a record peak of $125.79 out of the gate, breaking out of a bullish flag pattern that began with a 21% post-earnings gap higher back in November. However, since the pivot lower, the stock is back in this consolidatory pattern. The shares are holding their 10% year-to-date level for 2025, and have added 35% year-over-year. 

Keep an eye on analyst movement, in either direction. Of the 45 brokerages covering SHOP, 17 are on the fence with "hold" ratings, while the consensus 12-month price target of $121.60 is now a discount to its current perch. 

Options traders are loading up. In just the first hour of trading, 83,000 contracts have changed hands, volume that's 15 times the average intraday amount. Calls are doubling up puts, with the weekly 2/14 130-strike call the most popular, with sell-to-open activity detected.

SHOP hit a record peak of $125.79 out of the gate, breaking out of a bullish flag pattern that began with a 21% post-earnings gap higher back in November. However, since the pivot lower, the stock is back in this consolidatory pattern. The shares holding their 10% year-to-date level for 2025, and have added 35% year-over-year. 

Keep an eye on analyst movement, in either direction. Of the 45 brokerages covering SHOP, 17 are on the fence with "hold" ratings, while the consensus 12-month price target of $121.60 is now a discount to its current perch. 

Options traders are loading up. In just the first hour of trading, 83,000 contracts have changed hands, volume that's 15 times the average intraday amount. Calls are doubling up puts, with the weekly 2/14 130-strike call the most popular, with sell-to-open activity detected.

 

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