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  5. SHOP: SHOP was all over the map yesterday. [Shopify Inc. Class A Subordinate Voting Shares]
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Q: SHOP was all over the map yesterday. Started premarket at $US 123, then down to 109 after results released, then rose through afternoon and closed at 123 on HUGE volume. I see this morning on TD there have been 14 analysts weighing in this week with 9 buys and 5 holds. Can you parse through all this and provide what you feel is happening now and will happen going forward. There is no doubt SHOP is the real thing but how does this translate to stock performance?
Asked on February 12, 2025
5i Research Answer:

We are not sure we can add much. The stock is always going to be volatile. Fundamentally, the quarter was fine. The concern on margins was probably overdone, confirmed by the stock's bounce after the dip. There remains questions on the economy and consumer spending and of course how tariffs will influence customers and merchants. The margin shift is likely due to AI-investments, and this will ultimately help the company, we believe, in making consumers more likely to buy. The CC commentary was positive and we have no reason to be really concerned here. It is a high growth company with a strong market share and lots of cash. But it's not cheap and this will result in volatility on any bad news. We would continue to see it as one of the premier growth companies in Canada.