Shopify Stock extends the slide. Goldman says stocks will stay limited in the range.

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Shopify’s stock has slumped in recent times, and Goldman analyst Gabriela Borges sees “a time of slowing growth and [pretax] the margin tends to go down. “

Andrew Harrer / Bloomberg

Always volatile,


stocks have fallen 18% in the past four weeks, as investors continue to shy away from multi-level software stocks in general, and Covid-era winners in particular.

Adding to the pressure on Shopify stocks (ticker: SHOP) on Monday, Goldman Sachs analyst Gabriela Borges resumed coverage of the e-commerce software company with a neutral rating. The call was part of a larger launch on ’emerging software’ stocks, which included the addition of the company’s experience management software

Qualtrics International

(XM) to the company’s condemnation list with a buy rating.

Other actions launched with buy odds include




), a provider of tax compliance software; Shopify rival

BigCommerce Holdings

(BIGC); expense management software company

Coupa software

(CUT); and marketing software specialist

Hub Spot



). Other names classified as neutral include


(KLTR), which provides cloud-based video tools, and

Paycor HCM



), an HR software vendor for small and medium-sized businesses. She started

PowerSchool Fund

(PWSC), which sells software in the K-12 education market, with a sell rating.

As for Shopify, she says the company is well positioned for the long term, but sees headwinds in the short term. On the one hand, Borges says a recent slowdown in gross commodity value growth resulting from the pandemic is not expected to reverse for at least the next two to three quarters. And she says margins are expected to tend to decline in 2022, as the company invests in strategic initiatives to expand its range of services.

“While we view initiatives like order fulfillment as solving a critical problem for customers, they are likely to require continued and high investment,” she writes. “The stock will probably be limited in a period when growth is slowing and [pretax] the margin tends to go down.

The stock most affected by Goldman’s call to the group is PowerSchool, which fell 14.7% Monday to $ 17.15. The analyst writes that she views the company as “a dominant provider of information management and learning systems for K-12 students in North America,” but that the action is It’s traded at a premium over other education stocks, and the company already serves more than 70% of K-12 students in 93 of America’s top 100 school districts. She says further growth will require mergers and acquisitions and cross-selling into the existing base. His target on the stock is $ 17.

Shopify stock is down 4.3% to $ 1,399. Qualtrics stock rose a dime to $ 33.58.

Write to Eric J. Savitz at [email protected]

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