Baird analyst Colin Sebastian blames the post-earnings selloff in Shopify shares to decelerating growth in its Monthly Recurring Revenue, its new $5B shelf filing and the company's loss guidance for next quarter. However, he notes that strong merchant engagement trends drove a beat in Q2 and he sees the company having a defensible market leadership position and an opportunity for significant growth. Sebastian raised his price target on Shopify to $165 from $150 and keeps an Outperform rating on the stock, which is down 4.6% to $141.18 in afternoon trading.