{
  "id": 18091801,
  "title": "Shopify Stock Fell After Its Report. Here's the Price I'd Pay for It.",
  "url": "https://urgent.news/2026/11/04/shopify-stock-fell-after-its-report-heres-the-price-id-pay-for-it",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-04T08:14:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/11/04/shopify-stock-fell-after-its-report-here-s-the-price-i-d-pay-for-it/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Shopify's stock fell nearly 9% on Tuesday after the e-commerce software company reported its third-quarter results. Despite revenue climbing 32% year over year to about $3.7 billion and free cash flow rising 61% to $816 million, the stock is now about 20% below its Oct. 12 record close of $179.22. Initially, the author suggested waiting to see where the shares settled, but with revenue and cash flow now slightly above expectations, the question arises: is it finally time to buy?\n\nGuidance called for third-quarter revenue growth in the low 30s percent, and Shopify delivered that. However, revenue growth has been consistent at 34% in each of the two previous quarters, surpassing lower-thirties outlooks for the first and second quarters. Gross merchandise volume (GMV) rose 29% to $119 billion in the third quarter, after gains of 35% and 32% in the first and second quarters. Currency explains most of GMV's slowdown, with constant currency growth of 30% in all three quarters.\n\nWhile gross profit growth slowed to 28% in the third quarter, management expects high-twenties growth again in the fourth quarter. Spending is also set to rise, with operating expenses guided to 29% to 30% of revenue, compared to about 29% in the fourth quarter of 2025. Chief financial officer Jeff Hoffmeister noted that the forecast reflects increased marketing efforts, including some before Black Friday and Cyber Monday.\n\nShopify's free cash flow margin improved to 22% from 18% in the third quarter of 2025, pushing trailing-12-month free cash flow to around $2.7 billion. This brings the stock's valuation down to about 70 times trailing free cash flow, down from 86 times free cash flow before the report and 98 times at the Oct. 12 record. However, not all of the improvement is likely to be lasting. Only about 1.5 percentage points of the margin gain came from lasting cost discipline, with the rest attributed to temporary factors such as marketing tests, tax receivables, and accounting changes.\n\nWhile Shopify remains a rapidly growing e-commerce company bringing in more cash than a year ago, with $562 million spent on share buybacks in the third quarter, the stock is still trading at around 70 times free cash flow. The author suggests considering shares around $115, or about 55 times trailing free cash flow, which is roughly 20% below the current price. They are not in a rush to buy but will monitor the situation.",
  "summary": "The e-commerce company's free cash flow climbed 61% last quarter, but the stock fell anyway. Is it cheap enough now?",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}