Morgan Stanley Maintains Overweight Rating on Shopify Following Q3 Earnings
Shopify (SHOP) reported third-quarter fiscal 2026 results featuring a 29.5% increase in sales to $119.15 billion and a 32% rise in revenue to $3.74 billion. While the growth slightly missed high investor expectations, Morgan Stanley views the recent stock pullback as a buying opportunity, maintaining an Overweight rating with a $192 price target. The company's performance was bolstered by strong international sales (up 32%) and significant B2B expansion (up 74%). Despite foreign exchange headwinds affecting reported growth, constant-currency sales rose 30%. Looking ahead, Shopify provided optimistic fourth-quarter guidance with revenue growth expected in the low-30% range, supported by upcoming holiday shopping volumes.