Shopify Subscription Price Hike Is Another Tailwind For Stock, Analyst Says

Citi analyst Tyler Radke views Shopify Inc's SHOP price increases for its core monthly subscription plans as incrementally positive for the company's 2023 outlook.
The company announced an average ~33% increase for its Basic, Shopify, and Advanced plans from current monthly rates of $29, $79, and $299, respectively.
The analyst conducted a scenario analysis below to show the potential incremental benefits to revenue from the pricing change.
In the analyst's base case scenario, Radke believes this could translate into a ~5% incremental upside for subscription revenue in FY23 and a ~1.2% lift in total revenue.
Radke did not adjust his quarterly or full-year estimates and will likely provide an update in the following preview published ahead of Shopify's 4Q22 earnings release on February 15.
Price Action: SHOP shares traded lower by 0.23% at $47.22 on the last check Thursday.

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