Stock reaction is down due to full year GMV guidance ($4.71B) coming in a bit soft versus consensus ($4.73B) but as we discuss below, that guidance feels quite comfortably conservate and barring an economic collapse, we see GLBE outperforming.
A (short) thread
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That $4.71B GMV guidance (at the midpoint) feels quite achievable if not conservative.
The number implies 32.4% YoY growth off of 2023 which saw 45% growth, but we can disentangle that further.
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It was uncovered in the analyst Q&A portion of the earnings call that $200M – $300M of new GMV in 2024 will come from a conservate view of the Shopify Markets Pro rollout which started in September of 2023.
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Wholesale Inflation Falls Again; #Disinflation Station
A thread
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The Producer Price Index (PPI), as opposed to Consumer Price Index (CPI) that we received yesterday, came in below estimates both for headline and core.
In fact, overall PPI MoM has come in negative for two consecutive quarters - that’s not disinflation, that’s deflation.
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Core CPI MoM has come in at 0% for the last three months.