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PYPL
Benzinga
189 days

Shopify's Revenue Growth Outpaces Estimates, But PayPal-Related Margin Impact Raises Questions: Analyst

1. Shopify's Q4 revenue increased 31%, beating estimates. 2. Gross margin contracted to 48.1%, affected by PYPL revenue changes. 3. Free cash flow margin of 21.7% outperformed expectations. 4. Merchants' payment volumes rose, indicating market strength. 5. Shopify's guidance shows stability but less growth than expected.

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FAQ

Why Bearish?

PYPL's revenue recognition change negatively impacted Shopify's margins, suggesting potential revenue pressures for PYPL.

How important is it?

Shopify's performance and guidance impact market perceptions of payment processor role, affecting PYPL's investor outlook.

Why Short Term?

Immediate implications from Shopify's results may affect investor sentiment towards PYPL in the short run.

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