SHOP

MaxLinear MXL reported third-quarter 2026 non-GAAP earnings of 62 cents per share, beating the Zacks Consensus Estimate by 10.71%. The company reported earnings of 14 cents per share in the year-ago quarter and 35 cents in the previous quarter. Revenues of $218.1 million surged 72% year over year and surpassed the consensus mark by 1.44%. Sequentially, revenues increased 29%. Results benefited from accelerating adoption of optical AI data center products. Infrastructure revenues surged 210% year over year, reflecting strong demand for high-speed optical interconnects and expanding hyperscaler deployments. MaxLinear, Inc price-consensus-eps-surprise-chart | MaxLinear, Inc Quote Infrastructure revenues reached $125 million in the third quarter, increasing 47% sequentially and 210% year over year. The business remained MaxLinear's largest revenue category, exceeding the combined contribution of its other businesses. Growth was driven by accelerating deployment of optical connectivity products supporting AI infrastructure. The Keystone 100-gigabit-per-lane PAM4 digital signal processor platform continued ramping into high-volume production across multiple hyperscalers. Strong adoption of 800G optical solutions supported infrastructure growth, while expanding customer engagements strengthened the company's position in next-generation data center connectivity. Broadband revenues increased to $53 million from $45 million in the previous quarter. Connectivity revenues reached $25 million compared with $24 million in the previous quarter. Industrial and multimarket revenues were $15 million. Broadband and connectivity growth reflected large-scale deployments of fiber PON and Wi-Fi 7 gateways at major Tier 1 service providers in North America and Europe. MaxLinear also launched its Puma 9 platform, designed to support AI-ready DOCSIS 4.0 and 3.1+ multi-gigabit broadband services. Rushmore, the company's 200-gigabit-per-lane PAM4 platform supporting 1.6-terabit optical connectivity, continued progressing through customer qualification. Initial revenues are expected in early 2027, with a stronger ramp anticipated in the second half of the year. MXL expects the platform to become a significant growth driver in 2028 and 2029. MaxLinear is also expanding beyond optical interconnects through its Annapurna electrical retimer, Washington transimpedance amplifier and RackCommander control-plane portfolio. These products address high-speed electrical connectivity, telemetry and power management requirements in AI data centers. The Panther storage accelerator platform continued gaining traction, with management expecting revenues to roughly double in 2026. Meanwhile, the company's qualified XGS-PON hyperscale data center design win is expected to begin deployments in 2027, supported by secured backlog. Non-GAAP gross margin expanded to 60% from 59.1% in the year-ago quarter. The improvement reflected a favorable infrastructure product mix and increasing scale, partly offset by manufacturing cost pressures. Management noted that some cost increases have been passed along to customers. Non-GAAP operating expenses increased 12% year over year to $66.5 million in the reported quarter. Despite higher expenses, non-GAAP operating margin expanded to 29.5% from 12.1%, benefiting from higher revenues and operating leverage. MaxLinear ended the third quarter of 2026 with approximately $109.9 million in cash, cash equivalents and restricted cash. Operating activities used approximately $13.6 million during the reported quarter, reflecting substantial wafer prepayments to support growing demand for data center products. Inventory increased to $113.7 million from $105.5 million sequentially. However, days of inventory declined to 111 from 123, indicating improved inventory efficiency. Days sales outstanding increased to 31 from 28. The company also amended its credit agreement, increasing its revolving credit facility by $70 million to $200 million. The expanded facility provides additional financial flexibility to support customer demand and growth opportunities. For the fourth quarter of 2026, MaxLinear expects revenues between $240 million and $260 million. Infrastructure is expected to drive sequential growth through optical data center interconnect demand, while broadband and connectivity revenues are projected to decline seasonally. The company anticipates non-GAAP gross margin of 59-62% and non-GAAP operating expenses between $65 million and $70 million. MXL raised its 2026 optical data center revenue outlook to $250-$270 million. Customer bookings extend through 2027 into 2028, supported by demand for next-generation optical solutions. However, semiconductor foundry capacity constraints remain a challenge as the company prepares for additional product ramps. MaxLinear currently has a Zacks Rank #3 (Hold). Shopify SHOP, Seagate STX and Teradyne TER are some better-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their earnings over the next couple of weeks. Each of the three stocks sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Seagate is set to report its first-quarter fiscal 2027 results on Oct. 27, while Teradyne is scheduled to report its third-quarter 2026 results on the same date. Shopify is set to report its third-quarter 2026 results on Nov. 3. Shares of Seagate, Teradyne and Shopify have jumped 123.4%, 58.3% and 5%, year to date, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MaxLinear, Inc (MXL) : Free Stock Analysis Report Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report Teradyne, Inc. (TER) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Meta Platforms META reported third-quarter 2026 adjusted earnings of $7.4 per share, which increased 2.1% year over year, beating the Zacks Consensus Estimate by 13.50%. Revenues jumped 26% year over year to $64.6 billion, surpassing the consensus mark by 1.88%. Strong advertising demand, AI-driven engagement and improving monetization supported revenue growth. Ad impressions increased 10% year over year, while the average price per ad advanced 14%. However, higher infrastructure spending and legal expenses pressured operating profitability. Family of Apps revenues, which accounted for 99.3% of total revenues, increased 26.4% year over year to $64.16 billion. Advertising revenues rose 25.9% to $63.06 billion, supported by healthy engagement, user growth and ad-load optimization across Meta's platforms. Family of Apps other revenues surged 59% year over year to $1.1 billion, primarily driven by WhatsApp paid messaging and subscriptions. Meta Platforms, Inc. price-consensus-eps-surprise-chart | Meta Platforms, Inc. Quote Reality Labs revenues declined 5.7% to $443 million as lower Quest headset sales more than offset strong growth in AI glasses revenues. Family daily active people averaged 3.64 billion in September, up 3% year over year. Average revenue per person increased to $17.72 from $14.46 in the year-ago quarter, reflecting improving monetization across the company's ecosystem. Instagram global time spent per user reached an all-time high, growing at a double-digit rate. Facebook Reels engagement also achieved record levels, while Threads time spent per user increased more than 20%. AI-powered recommendation improvements lifted Instagram Reels viewing time by more than 4%. Meta's advertising systems continued delivering measurable performance gains. The company's expanded GEM ranking model increased offsite campaign conversions by 1.7% and app advertising conversions by 9.6%. Nearly 10 million advertisers used generative AI creative tools during the reported quarter. Meta launched its Muse personal agent and Muse Wonder frontier AI model during the reported quarter. More than 10 million users in the United States and Canada adopted Muse within approximately six weeks, with about 25% using the service on a given day. Shopping emerged as Muse's leading use case, accounting for more than a quarter of active users, with average purchases exceeding $200. Meta plans to monetize the platform through commerce fees, premium subscriptions and enterprise services. The company expects Muse's computing efficiency to improve more than tenfold over the coming year. These improvements could support broader adoption while reducing the cost of serving individual users. Total costs and expenses surged 68.1% year over year to $51.61 billion. The increase included a $9.89 billion charge related to the August 2026 agreement with U.S. state attorneys general concerning teen mental health litigation. Operating income declined 36.8% year over year to $12.99 billion, while operating margin contracted to 20% from 40% reported in the year-ago quarter. Excluding the legal charge, operating income would have increased 11% year over year. Infrastructure investments, depreciation, cloud spending and third-party AI token costs remained major expense drivers. Family of Apps operating income fell 31.4% year over year to $17.12 billion. Reality Labs operating loss narrowed to $4.13 billion from $4.43 billion, reflecting improving segment profitability despite continued investment. Meta ended September with $82.45 billion in cash, cash equivalents and marketable securities. Total debt stood at approximately $83.66 billion. Cash flow from operating activities totaled $32.79 billion, compared with $30 billion a year earlier. Capital expenditures, including finance lease principal payments, increased to $34.91 billion from $19.37 billion, resulting in negative free cash flow of $2.12 billion. The company also announced plans to establish a new non-voting Class C common stock, with shareholders receiving one new share for each existing share. The distribution is expected to effectively result in a two-for-one stock split in January 2027. For the fourth quarter of 2026, Meta expects revenues between $73 billion and $76 billion. The guidance incorporates an approximately 1% foreign currency headwind to year-over-year growth. The company raised its 2026 expense outlook to $175-$179 billion, incorporating the litigation charge. Capital expenditure guidance was narrowed to $135-$145 billion from $130-$145 billion. Meta expects Reality Labs operating losses of $18-$19 billion in 2026, a decline compared with 2025. Reality Labs losses are expected to further narrow to roughly $15 billion in 2027. The company anticipates strong revenue growth through 2027, supported by advertising improvements, AI advancements and emerging monetization opportunities. Currently, Meta Platforms carries a Zacks Rank #4 (Sell). Shopify SHOP, Seagate STX and Teradyne TER are some better-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their earnings results over the next couple of weeks. Each of the three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Seagate is set to report its first-quarter fiscal 2027 results on Oct. 27, while Teradyne is scheduled to report its third-quarter 2026 results on the same date. Shopify is set to report its third-quarter 2026 results on Nov. 3. Shares of Seagate, Teradyne and Shopify have jumped 153.1%, 78.5% and 8.3%, year to date, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Meta Platforms, Inc. (META) : Free Stock Analysis Report Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report Teradyne, Inc. (TER) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Jefferies maintained its 'Buy' rating and $175 price target on Shopify, citing potential GMV growth. - The firm said strong earnings and the Muse AI shopping partnership could lift Shopify shares. - Shopify will report its third-quarter earnings on Nov. 3. Shopify Inc. (SHOP) is on track for a fourth straight week of gains, with analysts seeing up to 10% upside ahead of its fiscal third-quarter (Q3) 2026 earnings results. Jefferies expects stronger gross merchandise volume (GMV), while Baird raised its price target to $190, adding to optimism. Shopify stock traded over 1% lower overnight, ahead of Thursday. The stock has gained nearly 1% so far this week. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Jefferies reaffirmed its 'Buy' rating and $175 price target on Shopify. The firm said its review of third-party data indicated that GMV could exceed expectations, offering a positive signal ahead of the company's quarterly results. The firm also sees a reasonable outlook for Q4. While Shopify shares have already gained on earnings expectations, Jefferies believes strong performance and clearer details on the company's relationship with Muse could provide fresh support for the stock. Meta Platforms (META) and Shopify are partnering to let Meta's personal AI assistant, Muse, buy products from stores on Shopify's platform for users. Shopify said the feature will work with Shop Pay, its one-tap checkout service that saves customers' payment and shipping details. In an X post last month, Shopify CEO Tobi Lutke said, "We are excited to announce we are partnering deeply with Muse to enable agentic checkout with Shop Pay on all Shopify stores, offering people an easy and delightful way to shop and check out with Muse." Baird raised its price target on Shopify to $190 from $160 and maintained an 'Outperform' rating. The revised price target implied a 10% upside from its last closing price. Similarly, on Monday, Cantor Fitzgerald raised its price target on SHOP to $158 from $145 but kept a 'Neutral' rating. The firm expects Shopify to beat Q3 estimates for GMV, revenue and operating profit, with sales growth in the low 30% range. Shopify is scheduled to report its Q3 earnings on Nov. 3. According to Fiscal.ai data, analysts see $3.74 billion in revenue and earnings of $0.46 per share. GMV trends and outlook could help determine whether the stock has room to run further. On Stocktwits, retail sentiment around the stock remained in 'neutral' territory. A user said, "Earnings is here in under 3 weeks! Today everything is red, by Friday this is over $180!." Another user said, "The institutions that bought this up in the last 2 weeks are going to lose a lot of money soon." SHOP stock has gained 7% year-to-date. Also see: FUN Stock Heads For Worst Week Since COVID-19 Pandemic: Rider Death, Financial Woes Pile Up Ahead Of Earnings For updates and corrections, email newsroom[at]stocktwits[dot]com. Shivani Kumaresan has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - SOXX Extends Selloff After 8-Day Decline, KOSPI Rebounds: Jim Cramer Calls SK Hynix 'Epicenter Of Fear' - COST Stock Heads For Best Week Since May: Costco's Digital Sales And Membership Growth Get Bullish Call From Analyst - HIMS Stock Snaps 3-Day Slump On Peptide Hopes: Trump Administration Reviews Plan That Could Unlock $2.2B Market

Shopify has been on a strong multi year run, and with the stock changing hands around US$170.85, the real question for you is whether that price still lines up with what its earnings can support. - Over the past 3 years, Shopify has delivered a very large 231.4% share price gain, which puts a lot of weight on the question of how much earnings power investors are now paying for. - New AI driven tools like Canvas and wider agent integrations can shape expectations for future profitability, since they may influence how quickly Shopify turns product adoption into sustainable earnings. - Your read on Shopify is one view; the desks covering it have another. See what analysts think Shopify's shares could be worth. The issue now is whether Shopify's recent earnings justify the valuation investors are putting on the stock today. If you want more context around what Shopify's AI heavy story means for your portfolio, lining it up against other 38 AI small caps can give you useful reference points. P/E is the cleanest yardstick here because Shopify is now earning profits that can be compared directly with what the market is paying for each dollar of those earnings. On that metric, the stock trades on about 114.0x, which is far above the broader IT sector on roughly 22.4x and also well ahead of the peer group near 68.9x. That gap suggests investors are already attaching a heavy premium to Shopify's current profit stream. The fair value framework, which adjusts the "right" P/E for Shopify's growth profile, margins, size and risk, points to a materially lower multiple than where the shares are priced today, so the stock screens as overvalued on this lens. Because tools like Canvas and other AI driven services have raised enthusiasm about Shopify's long term opportunity, the present valuation already bakes in a lot of that optimism, leaving investors to decide how much execution room they are comfortable paying for at this level. Explore the numbers behind Shopify's P/E valuation. Narratives pick up where the P/E puzzle leaves off for Shopify by outlining which future paths for growth, profitability and earnings would need to occur for the stock to appear meaningfully cheaper or richer than today's price on Simply Wall St's Community page. Each narrative links its number back to a clear view on how Shopify's growth, margins and risk profile might change, which you can revisit as new information becomes available. Community views on Shopify split between those who see an emerging commerce operating system and those worried that rich expectations collide with rising risks. Bull case: 32% undervalued "By expanding its role behind the scenes, Shopify increases switching costs, as merchants are less likely to leave a platform that handles payments, inventory and analytics..." Discover why this Narrative puts Shopify at 32% undervalued. Bear case: 26% overvalued "As e-commerce platform features continue to converge, Shopify risks losing differentiation as larger merchants migrate or competitors introduce similar payment and omnichannel offerings..." Explore why this Narrative puts Shopify at 26% overvalued. Everything so far has focused on what Shopify looks like today, yet professional analysts have laid out detailed expectations for where this business might be a few years from now and those projections give you another benchmark to compare with the current price. Explore where analysts expect Shopify to be in a few years. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SHOP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Shopify (SHOP), which belongs to the Zacks Internet - Services industry. This cloud-based commerce company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 10.10%. For the last reported quarter, Shopify came out with earnings of $0.42 per share versus the Zacks Consensus Estimate of $0.39 per share, representing a surprise of 7.69%. For the previous quarter, the company was expected to post earnings of $0.32 per share and it actually produced earnings of $0.36 per share, delivering a surprise of 12.50%. For Shopify, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Shopify has an Earnings ESP of +10.11% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on November 3, 2026. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Shopify Inc. (SHOP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The holiday quarter starts in about two weeks. And for e-commerce companies, it's the three months that matter most. Consider Shopify (NASDAQ:SHOP). The e-commerce software company earned $631 million of operating income in last year's fourth quarter -- 43% of its operating income for all of 2025. Amazon (NASDAQ:AMZN) and MercadoLibre (NASDAQ:MELI) lean on the season, too, though not nearly as hard. Notably, all three companies close their books on Dec. 31, so the December quarter is the fourth quarter for each. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Here's a closer look at all three stocks ahead of the season. Image source: Getty Images. Shopify's concentration isn't a one-off. The fourth quarter delivered 43% of the company's operating income in both 2025 ($631 million of $1.47 billion) and 2024 ($465 million of $1.08 billion). Not only is the holiday quarter the company's biggest for revenue (about 32% of 2025's total), but it's also the year's most profitable by a wide margin. Operating expenses don't rise with the holiday rush the way merchant sales do, so much of the season's extra gross profit can turn into operating income. And I think this year's setup looks even better. Second-quarter gross merchandise volume (the value of goods sold across the platform) rose 32% year over year, a fifth straight quarter of growth above 30%. Operating income climbed 68% to $488 million. In fact, profit growth has been accelerating: Operating income rose 37% in 2025, and it's rising much faster this year. For the third quarter, management guided for revenue growth in the low-thirties percentage range. The problem, however, is the stock's price. Shopify shares have pulled back sharply, from a 52-week high above $182 to about $130 as of this writing. Yet the stock still costs about 53 times what the company is expected to earn next year. The e-commerce giant still gets a seasonal lift. Fourth-quarter operating income of $25 billion last year was about 31% of the full-year total of $80 billion, a share almost unchanged from 2024. But Amazon's profit engine is increasingly its cloud computing business, Amazon Web Services, which doesn't depend on the shopping calendar. Profit growth is accelerating, too. Operating income rose 17% in 2025, then rose 43% to $27.5 billion in this year's second quarter. And for the third quarter, management guided for operating income of $22.5 billion to $26.5 billion, up from $17.4 billion a year earlier. Meanwhile, the company is stretching the season. This week, Amazon set its Prime Big Deal Days sale for Oct. 6 and 7, which could pull holiday spending into the quarter's first week. Shares trade near $248 as of this writing, or around 24 times Amazon's expected earnings per share for next year, the lowest price-to-earnings multiple of the three. The Latin American e-commerce and fintech company runs the holidays differently. Its fourth-quarter revenue jumped 45% year over year to $8.8 billion in 2025, the company's biggest quarter of the year. Yet income from operations of $889 million was only 28% of the 2025 total, down from a 31% share in 2024. That wasn't an accident. Management said it made "tactical investments to reinforce Mercado Libre as the primary destination for demand during peak season" -- in other words, it spent on free shipping, marketing, and credit cards to capture holiday shoppers. And the spending hasn't let up. Second-quarter revenue soared 50% year over year to $10.2 billion, while the operating margin narrowed to 6.7%, from 9% in the fourth quarter of 2025 (excluding a one-time tax credit in that quarter). Management is deliberately trading near-term margin for growth. MercadoLibre's stock trades at about 33 times the profit it's expected to produce next year. For a company growing revenue 50%, the price is arguably fair, if the spending eventually pays off. Ultimately, Amazon is my first pick. Its profits lean less on the season than Shopify's (the cloud earns all year), and its shares carry the lowest price-to-earnings multiple of the three. MercadoLibre is a close second. Margins may stay under pressure through the holidays (that's the plan, after all), but revenue growing 50% covers a lot of spending. I'd buy it, too, though I'd keep the position smaller. Shopify is the group's best pure holiday story, and the most concentrated payoff sits just ahead. The growth is exceptional, to be sure. But a price of about 53 times forward earnings already assumes years of quarters like these. Of course, a weak holiday season would hurt all three -- Shopify most of all. I would hold off on Shopify shares at this price. Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Shopify wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $420,109!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,303,689!* Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 16, 2026. Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, MercadoLibre, and Shopify. The Motley Fool has a disclosure policy. The E-Commerce Stocks to Buy Before the Holiday Quarter was originally published by The Motley Fool

Interested in Navan, Inc.? Here are five stocks we like better. Navan shares fell over 15% after Q2 earnings despite 35% revenue growth, as investors worried rising AI spending could outpace future growth. The company also acquired BoomPop, an AI-powered event-planning platform, expanding its bundled travel, expense, and meetings offering without affecting guidance. Despite the sell-off, 17 analysts give NAVN a consensus Moderate Buy rating with a $30.50 price target, suggesting about 43% upside. Navan Inc. (NASDAQ: NAVN) wouldn’t be the first company investors would think of as a target of the recent sell-off of artificial intelligence names. But that may be part of the trouble facing NAVN after the company’s Q2 earnings report for its 2027 fiscal year. That’s because in the case of Navan, a slowdown in AI growth would directly contradict the company’s current growth initiatives. The company is significantly increasing its AI spending, but investors are worried that its growth won’t keep pace. → Fabrinet, Dycom, and Qualcomm: 3 AI Fallen Angels Wall Street Just Marked Down Navan (formerly TripActions) is a corporate travel and expense management platform that bundles business travel booking, corporate cards, expense reporting, and now meetings and events into one AI-powered system. It competes against fragmented, legacy point solutions in that market, such as SAP Concur and American Express Global Business Travel (Amex GBT). NAVN is down over 15% since the earnings report. That’s despite impressive headline numbers. Quarterly revenue was up 35% year over year (YOY) to $233 million. Perhaps more significantly, the company reported its third consecutive quarter of positive earnings on a non-GAAP basis. → Rocket Lab Insiders Are Selling—But Institutions Keep Buying Both numbers exceeded analysts’ expectations. The company also raised its full-year guidance for both revenue (32% at the midpoint) and non-GAAP income (a 9% margin). That would normally be enough to push the stock higher, but that wasn’t the case. The concern is the execution of its AI strategy. Navan reported that its AI support agent, Ava, handled roughly 60% of the company’s customer interactions in Q2. Plus, over 50% of Ava calls ran on Navan’s own models, up from 30% in Q1. → The End of Big Tech Buybacks? Only One Hyperscaler Is Still Repurchasing Shares But at what cost? Navan reported a 46% increase in operating expenses, which can be attributed to the company’s AI growth. That sets up the contradiction for investors. Navan is a growing company in a resilient sector. But that growth is being fueled by AI, which creates an execution risk. That execution risk got put into even sharper focus when the company announced an acquisition that adds another variable to the equation. The same day Navan reported earnings, the company announced it had acquired BoomPop, an AI-powered platform for planning corporate meetings and events. Terms weren't disclosed. The deal wasn’t a surprise, which may explain the muted market reaction. Navan and BoomPop partnered earlier this year, and BoomPop's technology was already integrated into Navan's events offering before the acquisition made the relationship permanent. It's a pattern the company has used before, most recently with its Smartrips deal in Latin America: partner first, prove out demand, then buy and fully integrate. BoomPop brings a track record that fits Navan's consolidation pitch. The company says it has supported events for roughly 250,000 people at customers, including Accenture (NYSE: ACN), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL), Salesforce (NYSE: CRM), and Shopify (NASDAQ: SHOP), and estimates it has cut customers' event-booking costs by about 30% on average. Management has pointed to meetings and events as a category in which most customer spend still occurs outside any managed platform. That’s the same space Navan has already targeted with travel and expense. For investors, the question is timing. Navan said the acquisition is expected to have no material impact on guidance, which helps rule out BoomPop as the source of the expense growth that spooked the market. But layering another integration onto a company already under scrutiny for rising costs explains why the post-earnings reaction ties into the AI spending debate. Will this be the kind of platform-building that pays off, or just another line item that investors have to trust management to convert into growth? The gap down after the company’s earnings report has reversed nearly all the gains NAVN made over the summer. With negative sentiment surrounding AI, investors should watch a level around $18.30 as potential support. At the same time, the relative strength indicator (RSI) has moved into oversold territory. While the RSI is not a perfect indicator, it can be a signal that bearish sentiment is overdone. The Navan analyst forecasts on MarketBeat support a bullish outlook. From the 17 analysts tracked by MarketBeat, NAVN gets a consensus Moderate Buy rating with a $30.50 price target. That’s a gain of approximately 43% from recent prices. On the other hand, short interest in NAVN, while only around 10%, has stayed higher than average in the last four quarters, which could keep some downward pressure on the stock. The article "Navan's Strong Quarter Meets an AI Spending Reality Check" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

It has been about a month since the last earnings report for Shopify (SHOP). Shares have lost about 1.1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Shopify due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Shopify Inc. before we dive into how investors and analysts have reacted as of late. Shopify reported second-quarter 2026 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate by 7.69%. The figure increased 20% year over year. Revenues jumped 33.7% year over year to $3.58 billion and surpassed the consensus mark by 4.36%.The upside reflected broad-based Gross Merchandise Volume (GMV) growth and higher payments penetration. GMV increased 31.6% to $115.57 billion, while Shopify Payments penetration expanded three percentage points to 68% of global GMV. Merchant Solutions revenues increased 37.4% year over year to $2.78 billion. Growth was primarily driven by higher GMV, increased payments penetration and strength in partner revenue shares and financial services.Shopify Payments expanded into the United Arab Emirates, bringing availability to 40 countries. Payments penetration in Europe rose more than 350 basis points (bps), supported by newer market launches and additional local payment methods.Shop Pay GMV advanced 53% year over year. Shopify added more local payment options to Shop Pay and continued expanding installment adoption, giving buyers additional ways to complete purchases. Subscription Solutions revenues rose 22% year over year to $802 million. Standard-plan monthly subscriptions were the largest growth contributor, supported by strong merchant net additions.Monthly recurring revenue increased 19% year over year to $221 million. Plus represented 34% of MRR and also grew 19%, reflecting continued demand from larger and more complex merchants. International GMV advanced 37%, while North America GMV grew 28%. Europe posted 34% constant-currency GMV growth, highlighting continued geographic breadth.Offline GMV climbed 32% and B2B GMV surged 76%. Shopify expanded native B2B capabilities beyond Plus, allowing more merchants to manage wholesale and direct-to-consumer operations from the same administration platform.The company also added or expanded relationships with brands including Holt Renfrew, Guess, Avon, Arhaus and Canada Goose. These wins support Shopify’s unified-commerce push across online, physical retail and wholesale channels. AI-driven traffic and orders to Shopify stores tripled year over year. New-buyer orders from AI channels came in at nearly twice the rate of other channels, while 75% of AI-attributed orders originated outside the top 100 product categories.Sidekick handled nearly 34 million conversations during the quarter. Daily active merchants using the tool increased 3.6-fold, daily sessions rose 4.8-fold, and merchants created more than 36,000 custom apps, up from 12,000 in the prior quarter.Shopify’s Catalog contains more than 1 billion products. AI searches powered by Catalog converted at twice the rate of searches relying on scraped data, demonstrating the value of accurate and structured product information. Gross profit increased 31.2% year over year to $1.71 billion. Merchant Solutions gross profit rose 39%, with margin improving slightly as growth in higher-margin revenue streams offset pressure from increased payments volume. Subscription Solutions gross margin remained just below 80%, in line with the first quarter. Shopify maintained that level despite increased Sidekick usage, reflecting cost efficiencies as adoption of the AI assistant scaled.Operating expenses were $1.22 billion, or 34% of revenues, compared with 37.7% a year earlier. Sales and marketing represented less than 14% of revenues, improving about 160 bps.Operating income increased 47% to $623 million as gross profit dollars grew faster than expenses. Transaction and loan losses were 3.9% of revenues, with Shopify Capital serving as the largest driver during the quarter. Shopify ended the quarter with $1.66 billion in cash and cash equivalents and $3.29 billion in marketable securities. Loans and merchant cash advances totaled $2.18 billion, while the company repurchased $1.42 billion of common stock.Net cash provided by operating activities increased to $658 million from $428 million. Free cash flow rose to $654 million from $422 million, while the free cash flow margin expanded to 18% from 16%. For the third quarter of 2026, Shopify expects revenue growth in the low-30% range. Gross profit dollars are projected to increase in the mid-to-high-20% range.Operating expenses are expected to equal 33% to 34% of revenues. Free cash flow margin is projected in the high-teens to low-20% range, including less than one percentage point of benefit from the merchant cash advance accounting change. In the past month, investors have witnessed a upward trend in estimates revision. At this time, Shopify has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock has a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Shopify has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Shopify Inc. (SHOP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ARK Invest sold 40,392 Shopify shares from its ARKK and ARKW ETFs after SHOP gained more than 25% in August. The sales came after Shopify reported strong Q2 results, including 34% revenue growth and 68% higher operating income. Shopify’s rally has made its valuation expensive, with its P/E nearing 95x. Shopify Inc. (SHOP) stock is heading for a weekly loss as investors digest profit-taking by Cathie Wood’s ARK Invest following a blockbuster August rally. ARK sold more than 40,000 shares, raising fresh questions about the stock’s valuation. Shopify stock inched 0.3% higher overnight, ahead of Thursday. SHOP stock has tumbled 7% so far this week. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox ARK Investment Management sold a combined 40,392 Shopify shares through two actively managed funds, according to its Sept. 2 trade activity. The ARK Innovation ETF (ARKK) accounted for 35,322 shares, while the ARK Next Generation Internet ETF (ARKW) shed another 5,070 shares. The sales followed a powerful run for Shopify stock, which climbed more than 25% in August and traded as high as $158. The rally came after the company posted fiscal second-quarter (Q2) revenue of $3.58 billion, a 34% year-on-year increase that exceeded Wall Street's expectation of $3.4 billion, according to Fiscal.ai data. Shopify also generated $488 million in operating income, up 68% from last year. Gross merchandise volume (GMV) reached $115.57 billion, a 32% increase, while free cash flow climbed to $654 million. Its free-cash-flow margin improved to 18% from 16% a year ago. The trade activity suggests ARK is not simply sitting on the Shopify gains. ARKW and the ARK Fintech Innovation ETF (ARKF) together purchased 9,993 shares of the 3iQ Solana Staking ETF, increasing exposure to crypto-related assets. ARK also bought shares of Intellia Therapeutics Inc. (NTLA) through its genomics-focused fund, highlighting continued interest in higher-risk biotechnology opportunities. Shopify’s rapid appreciation has also pushed its valuation higher. According to Koyfin data, the stock’s trailing price-to-earnings ratio is approaching 95 times, while its enterprise value-to-sales multiple stands at 13.4 times. Investors are therefore weighing whether exceptional growth can continue to justify the premium valuation. Last week, Phillip Securities downgraded Shopify to ‘Accumulate’ from ‘Buy’ because the stock’s recent rally has made its valuation look expensive. However, the firm remained positive on Shopify’s growth and believes the company stands to benefit from the growing use of AI-powered agentic commerce. On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory with a 37% gain in message volume over the past week. SHOP stock has declined nearly 12% year-to-date. Also See: MGNI Stock Heads For Another Green Week: Analyst Says Google AdTech Ruling Opens Door To Bigger Opportunity For updates and corrections, email newsroom[at]stocktwits[dot]com Shivani Kumaresan has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: TSLA Stock Up 7% Ahead Of Cybercab Launch Event — Fund Manager Sees Selloff Ahead, Citing Past Patterns TSLA Stock Up 7% Ahead Of Cybercab Launch Event — Fund Manager Sees Selloff Ahead, Citing Past Patterns Pentagon Calls Anthropic A ‘Supply Chain Risk’ — A Day After Commerce Secretary Backs AI Firm

Shopify has delivered a strong 112.3% gain over the past three years, while current valuation checks point to the stock trading at a premium to what its cash flows and market multiples suggest. A 112.3% share price gain over three years means recent investors have already seen substantial value created, which raises the bar for further upside from here. The expanded partnership with Affirm through Shop Pay Installments in Australia can support expectations for ongoing commerce volume growth. Any disappointment in future cash flow delivery remains a key risk for a stock already screening as expensive. With a value score of 1 out of 6, Shopify does not screen as a clear bargain on the broad set of valuation checks. The issue now is whether Shopify's current price leaves enough room between the market valuation and the intrinsic value estimate from the Discounted Cash Flow, given how much has already been priced in over the past few years. Balance Shopify's premium pricing by scouting other ecommerce and fintech growth stories that still screen as potential value, starting with 50 high quality undervalued stocks. The Discounted Cash Flow model for Shopify starts with the cash the business is expected to generate for shareholders and works back to an estimate of what the stock might be worth today. Shopify has latest twelve month free cash flow of about $2.35b, and the model assumes that this cash flow grows over time rather than shrinking. On those projections, the DCF points to an estimated intrinsic value of around $117 per share. That is below the current share price, which implies the stock trades at roughly a 19.4% premium to this cash flow based estimate and screens as overvalued on this model. The expanded Shop Pay Installments partnership with Affirm in Australia adds a growth angle. However, the DCF outcome suggests investors are already paying up for that kind of opportunity. Overall, Shopify stock currently looks overvalued relative to what its projected cash flows support. Our Discounted Cash Flow (DCF) analysis suggests Shopify may be overvalued by 19.4%. Discover 50 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Shopify. P/E is a useful cross check for Shopify because the company is now producing earnings that investors can compare directly with peers. Shopify trades on a P/E of about 93.2x, which is well above the IT sector average of 20.1x and also higher than the peer group average of 53.5x. That is a sizeable premium even for a recognised ecommerce and fintech platform. The fair P/E ratio implied by the model is around 50.7x. This is the multiple that might be expected for Shopify after considering its size, margins, growth profile and risk. The current 93.2x therefore sits a long way above this level, which suggests investors are already paying up heavily for future execution. On the P/E multiple, Shopify stock currently appears overvalued compared with both its tailored fair ratio and sector benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the valuation checks on Shopify leave off. They spell out which future paths for growth, margins and earnings would need to hold for the stock to be worth materially more or less than today's price. Each narrative ties a specific fair value to a clear story about Shopify's potential catalysts and risks so you can track over time which version of the story is actually unfolding on the Community page. Community views on Shopify are split, with some investors seeing a rising commerce operating system story while others focus on cost pressure and crowded competition. Bull case: 45% undervalued Read the full Bull Case to see why Shopify could be undervalued Bear case: 13% overvalued Read the full Bear Case to see why Shopify could be overvalued Do you think there's more to the story for Shopify? Head over to our Community to see what others are saying! Shopify now screens as overvalued on both the Discounted Cash Flow (DCF) intrinsic value estimate and the P/E multiple checks, which points to a consistent message rather than a mixed signal. The low value score reinforces that broader valuation tests are not finding clear upside at the current price. From here, the key question is whether Shopify can deliver the growth and margin profile that would make today’s premium look reasonable rather than stretched. That depends on how well the company converts its commerce ecosystem and partnerships into durable cash flow over time. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SHOP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]