Shopify: The Agentic AI Tailwind No One Is Pricing In
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Amrita RoyInvesting GroupFollow5ShareSavePlay(14min)Comment(1)SummaryI am reiterating my “buy” rating on Shopify with an updated price target of $195 per share as revenue continues to beat management’s guidance by a huge margin.During the quarter, Shopify continued to make robust progress across its strategic growth levers, while doubling down on their Agentic Commerce roadmap.While the stock is expensive on a 12-month forward PE ratio basis, along with potential short-term macro headwinds, the tailwind from Agentic Commerce is likely underestimated.Per research, Agentic Commerce could reach $1T in revenue in the US market by 2030. For Shopify, we can expect better conversion rates at checkout, leading to higher GMV and Merchant Solutions revenue. imaginima/iStock via Getty Images Introduction & Investment Thesis Shopify (NASDAQ:SHOP) has been on a tear this year, up 50% YTD, outperforming the S&P 500. Since the beginning of the year, I have rated the stock a “buy” three times, with each ofThis article was written byAmrita Roy5.37K FollowersFollowAmrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the family fund. The fund's objective is to invest capital in sustainable, growth-driven companies that maximize shareholder equity by meeting their growth-oriented goals. In addition, she also started her own award-winning newsletter, The Pragmatic Optimist which focuses on portfolio strategy, valuation, and macroeconomics in concert with her husband Uttam Dey who is also a contributor on Seeking Alpha. Prior to cofounding her fund, Amrita worked for 5 years in high-growth supply-chain start-ups in downtown San Francisco, where she led strategy. During her time in the Bay Area, she also worked with venture capital firms and start-ups, where her efforts led her to grow the user acquisition business. During this time, she was introduced to investment portfolios and was able to maximize returns for clients during the pandemic. The cornerstone of Amritas work rests on democratizing financial literacy for everyone and breaking down financial jargon and complex macroeconomic concepts into formats that are easily digestible but more empowering than the typical investment thesis. Her newsletter has been featured as the Top Newsletter in Finance on popular newsletter platforms and she aims to bring her ideas to Seeking Alpha as well.Analyst’s Disclosure:I/we have a beneficial long position in the shares of SHOP, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You