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Shopify Stock Surges After Strong Earnings

Analysts Cheer Beat-and-Raise Quarter

Shares Rise 13% Monday

Shopify Inc. (SHOP) shares jumped 13% in Monday trading after the e-commerce giant reported strong fourth-quarter earnings and revenue that beat analyst expectations.

Shopify reported earnings per share of $1.32, well above the $1.18 consensus estimate. Revenue also came in strong at $1.58 billion, beating the $1.54 billion estimate.

The strong results were driven by continued growth in Shopify's core e-commerce business, as well as the company's recent acquisitions of fulfillment provider Deliverr and social commerce platform TikTok.

Analysts cheered Shopify's performance, with many raising their price targets on the stock. Piper Sandler analyst Patrick Lee raised his target from $85 to $100, saying that Shopify is “well-positioned to continue to benefit from the growth of e-commerce.”

Shopify's strong earnings report is a reminder of the resilience of the e-commerce sector, even in the face of economic headwinds. The company's continued investment in innovation and acquisitions is paying off, and Shopify is well-positioned to continue to grow in the years to come.