The quarter was strong, but the stock was priced for more

Shopify’s Q1 report was not weak. That is the important starting point. Revenue grew 34% year over year to about $3.17 billion, GMV cleared $100 billion, and free cash flow remained solid at $476 million. For most companies, that would be a very good quarter.

But Shopify is not priced like most companies.

The stock entered earnings with a premium-growth valuation, which means investors were not just looking for a beat. They were looking for proof that Shopify could keep growing at an exceptional pace while expanding margins and defending its long-term platform story.

That is where the reaction makes more sense. The selloff was less about Q1 itself and more…