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Shopify Inc (US) (SHOP) Stock Pushes Past $100 After Earnings

Expectations were high ahead of the Shopify Inc (US) (NYSE:SHOP) earnings report Tuesday morning. Somewhat quietly, Shopify stock had been one of the best performers in the entire market in 2017. SHOP stock had risen 115% year-to-date as of Monday’s close.

Those gains gave SHOP a seemingly nosebleed valuation. At $92, SHOP traded at 15x revenue, using the midpoint of 2017 guidance given after Q1 earnings. That multiple doesn’t quite rise to that given Snap Inc (NYSE:SNAP) in its initial post-IPO trading, but it was one of the highest in the entire market.

Between the YTD gains and valuation, investors would be forgiven for seeing Q2 earnings as potentially dangerous for SHOP stock. Instead, Shopify posted yet another “beat and raise” quarter, and Shopify stock is up another 10% in pre-market trading to top $100.

The most important number in Shopify earnings is 75%. That’s how much revenue grew year-over-year. Sales of $151.7 million were more than $8 million ahead of consensus — with the 75% growth rate nine points better than the Street expected.

Adjusted operating loss narrowed modestly year-over-year, coming in at $2.9 million, and beating guidance of $6 million-$8...