📈 Shopify: Shares rocket 25% after great results and optimistic holiday predictions! 🎉
Shopify $SHOP, a Canadian e-commerce company that makes it easy for entrepreneurs to run online stores, reported exceptional third quarter results. Its stock is up more than 25 %. This jump is not only due to great sales, but also a positive outlook for the holiday shopping season. 🎄
Revenue came in at $2.16 billion - above expectations of $2.12 billion.
Earningsper share were 64 cents.
Grossmerchandise volume (GMV), the value of all goods sold on the platform, rose by 24 % to $69.7 billion. Analysts' expectations were "only" 68.1 billion dollars.
Successful investments in growth and expansion
Shopify has strategically invested in marketing and developing new services in recent months, including advertising tools and payment processing. These moves have had their impact on short-term profits, but the result is increased market share. The company is thus effectively competing with giants like Amazon a Walmart, but also software leaders Salesforce and BigCommerce.
The trust of big brands
Company President Shopify, Harley Finkelstein, said that many major retailers and brands joined during the third quarter - such as Lionsgate Entertainment, Reebok, luxury brand Off-White, but also Vera Bradley and Hanes 🛍️. This demonstrates the growing confidence in Shopify as a reliable platform not only for small businesses but also for big players.
"Shopify is an increasingly common choice for the entire business sector," Finkelstein said. "We're poised to grow across different merchant segments, across company sizes, geographies, channels and products."
Future growth prospects: strong Christmas season on the horizon
CFO Shopify Jeff Hoffmeister said the strong results from this year support an optimistic forecast for the fourth quarter. The company expects year-over-year revenue growth in the mid-to-high double-digit range. This confidence is based on continued growth in gross merchandise volume on the platform, which Shopify expects to continue during the key Christmas period 🎁.
Shopifyshares have already risen by 45 %. The company represents a strong investment opportunity in e-commerce, benefiting from the growth of the digital market and changing shopping habits. GMV growth, expansion of services offered and attracting significant new customers are factors that signal the potential for long-term success 🚀.
What is your opinion of Shopify?
Great company that knows what it's doing, but the current valuation is quite high and the stock is way overvalued.
Great results and it is interesting that this company has been able to grow so quickly. I don't want to buy their stock though, as the price is too volatile.
It's pretty freaky, but I haven't bought any. It's obviously a growth company, but I don't want to invest in it.
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A nice profit for those who have the company in their portfolio. I personally don't own the stock and don't follow the company, but it's a nice model since I've used it in practice.