01:19 PM EDT, 07/17/2024 (MT Newswires) -- Deutsche Bank industry conversations with Shopify ( SHOP ) merchants and agencies suggest second quarter results should reinforce many of the key longer-term thesis points on Shopify ( SHOP ), specifically around the Plus/Enterprise opportunity along with execution against strategic initiatives.

For the quarter itself, these conversations, analysis of app usage data and Bloomberg Second Measure alternative data suggest results will be ahead of expectations especially on GMV and revenue. The data indicates low-20's GMV growth vs. Street +19% as a result of stable same store sales and continued new Plus merchant growth.

However the stock is likely to remain somewhat range bound post earnings as Deutsche Bank is not expecting much clarity on the level/timing of ROI from marketing investments. "While commentary on marketing ROI will likely remain positive, we expect investors will still come away with questions as the benefits are not expected to show up in leading KPIs until next year, making the impact difficult to measure."

Deutsche Bank expects investors will focus on growth in Shopify Plus, adoption of Point-of-Sale and progress on B2B endeavors.

Shopify ( SHOP ) has a Buy recommendation and a US$80 target.

Price: 88.08, Change: -7.24, Percent Change: -7.60