RE:RE:RE:Prudent?We will see if guidance proves correct in future quarters thanks to the prudence.
Considering current interest rates, stubborn inflation, and the likelihood of a recession at some point in 2023, it's best to be conservative with guidance at this point IMO. It's about underpromising and overdelivering, especially with tech stocks in this type of environment. Otherwise, if you're a buy and holder of SHOP, you will eventually pay the price if guidance that is too optimistic ends up missing the mark.
If you rely on analysts as a key factor in your decision-making, you are really in trouble in my view. Analysts are typically way too optimistic in their price targets, especially for tech stocks like SHOP that had already shot up to over $150 in a relatively short time.
Lastly, some Q4 results you may have overlooked:
- Operating Loss of $189M vs. Income of $14M a year ago.
- Adjusted Operating Income of $61M vs. $130M a year ago.
- Net Loss per Share of $0.49 vs. Net Loss of $0.30 per share a year ago.
Wow. Stellar results indeed.
I win.