Shopify Stock Falls Nearly 8% After Q4 Revenue Growth

Shopify Inc. reported a robust Q4 2024 earnings report with a 31% revenue increase, surpassing analyst expectations with $2.8 billion in revenue and an adjusted EPS of 44 cents. Despite this strong performance, the company's stock fell nearly 8% in premarket trading due to disappointing guidance for Q1 2025, particularly regarding free cash flow margins expected in the mid-teens. Analysts noted that while the lower guidance is concerning, it reflects investment timing rather than fundamental weaknesses. Shopify is shifting its focus toward larger enterprises, aiming to onboard major brands like Mattel to enhance growth beyond its traditional small-business base. Year-to-date, Shopify's stock performance remains strong, with a 10% increase, though investor sentiment is cautious with many analysts maintaining