Shares of Shopify Inc. (NYSE: SHOP) closed just over $137 on Wednesday, continuing to drift lower from the multi-year high set at the start of August. That peak was driven by the company’s blowout Q2 earnings report, which smashed expectations and showed revenue growth accelerating almost across the board. The post-earnings surge had the stock up 123% since April’s low, but bulls have reason to be frustrated by the subsequent retreat.
Still, there are plenty of reasons to think the market has this one wrong. The recent dip looks more like post-earnings profit-taking than the start of a deeper correction. Shopify’s fundamentals are intact, analysts remain supportive, and the broader market is still leaning into growth stocks.
