Why Shopify (SHOP) Stock Is Trading Up Today
What Happened: Shares of e-Commerce software platform Shopify (NYSE:SHOP) jumped 12.9% in the after-market session after the company reported gross merchandise value, revenue, and operating profit that beat expectations pretty strongly this quarter. Revenue growth was strong and it will continue in the next quarter as the company guided Q2 to feature a similar growth rate vs. Q1 (in-line with Consensus expectations). Shopify announced that it is selling its logistics business to Flexport (expected to close in 2Q23), and Shopify will receive 13% equity interest in Flexport. The market is likely cheering this deal because it should improve the company's operating leverage and capex profile. Lastly, Shopify announced layoffs that will impact roughly 20% of its workforce. Overall, we think this was a really good quarter that should leave shareholders feeling very positive. ... Continue Reading
Kayode Omotosho 2023/05/04 2:14pm
What Happened: Shares of e-Commerce software platform Shopify (NYSE:SHOP) jumped 12.9% in the after-market session after the company reported gross merchandise value, revenue, and operating profit that beat expectations pretty strongly this quarter. Revenue growth was strong and it will continue in the next quarter as the company guided Q2 to feature a similar growth rate vs. Q1 (in-line with Consensus expectations). Shopify announced that it is selling its logistics business to Flexport (expected to close in 2Q23), and Shopify will receive 13% equity interest in Flexport. The market is likely cheering this deal because it should improve the company's operating leverage and capex profile. Lastly, Shopify announced layoffs that will impact roughly 20% of its workforce. Overall, we think this was a really good quarter that should leave shareholders feeling very positive. ... Continue Reading