Shopify (NYSE:SHOP) shares fell 1.6% during premarket trading in New York following the e-commerce company's investor event on Tuesday.
Analysts had mixed reactions to the event, with Citi perceiving it as a "slight incremental positive." However, Citi expressed reservations about the risk/reward into 2024, citing the valuation being back at near-term highs and not deeming it "attractive."
Similarly, Wedbush downgraded shares to Neutral from Outperform, citing valuation.
“We come away from the event with increased confidence in our first focus area as the company continues to win share of merchants and share of global eCommerce, however our view of the long-term TAM and monetization opportunity remain unchanged following the event.”
“We see limited room for further multiple expansion, and without incremental catalysts emerging from the investor day,” analysts wrote in a note to clients.
Instead, analysts should focus on Amazon (NASDAQ:AMZN) and MercadoLibre (NASDAQ:MELI) as both have “greater upside.”