Steer Clear of Shopify Stock: A Warning Ahead of Q1 2025 Earnings
In essence, after closing a trading cycle with Amazon's earnings, reviewers are purchasing products to sell them off on Shopify post-launch.
Ready to hear some frank advice? I'm advising you to sell Shopify Inc. (NASDAQ:SHOP) stock ahead of Q1 2025 earnings on May 8th.
Why? Analysts have been sounding the alarm, expressing cautious outlooks that go beyond the impressive quarterly growth figures Shopify displayed. Even though they reported a 27% revenue increase and a 31% surge in international gross merchandise volume (GMV), the analysts aren't betting on any major positive surprises from the earnings report itself[1].
One seasoned Wall Street portfolio manager has already downgraded Shopify to a Sell before Q1 2025 earnings[3]. That alone speaks volumes, implying that the stock’s momentum may be weaker than anticipated or that valuation concerns are outweighing near-term growth prospects.
Major broker BNP Paribas Exane has also lowered their rating for Shopify from an "outperform" to a "neutral" (or hold), with a reduced price target of $100[2][4][5]. This downgrade indicates growing uncertainty about Shopify’s near-term outlook, possibly considering broader market pressures or specific risks like tariff impacts or tentative Q2 guidance hinted at by other analysts.
Despite generally favorable evaluations from other firms, these downgrades suggest some investors and analysts see limited upside or growing risks surrounding Shopify’s stock performance heading into the earnings release.
In essence, the downgrade to Sell is due to moderated growth expectations, potential margin or cost concerns, and careful guidance for the near future, making some analysts more risk-averse ahead of Q1 2025 earnings[3][5].
So, consider this your friendly warning: It might be worth considering selling your Shopify stocks before the Q1 2025 earnings release on May 8th. As always, do your homework and make your investment decisions based on your best judgment.
[1] Source[2] Source[3] Source[4] Source[5] Source
Investing in Shopify stock might not be a wise choice ahead of the Q1 2025 earnings release, as analysts have downgraded it to a Sell due to moderated growth expectations and potential margin or cost concerns. Even though major broker BNP Paribas Exane has lowered their rating from an "outperform" to a "neutral," with a reduced price target of $100, it highlights growing uncertainty about Shopify’s near-term outlook in the finance industry and the stock-market.
