AMZN - Why Shopify Stock Popped 27% This Week
2023-11-02 20:26:04 ET
Shares of Shopify (NYSE: SHOP) are up 27.2% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence , after the e-commerce platform company announced strong quarterly results.
Shopify popped more than 22% on Thursday alone after its third-quarter update hit the wires. Revenue was up 25% year over year, to $1.714 billion, translating to non-GAAP (adjusted) net income of $0.24 per share (swinging from a net loss of $0.02 per share in the same year-ago period). Analysts, on average, were only expecting adjusted net income of $0.14 per share on revenue of $1.67 billion.
Within Shopify's top line, subscription solutions revenue climbed 29% year over year to $486 million. The merchant solutions segment revenue grew 24% to $1.2 billion, helped by a 22% increase in gross merchandise volume (to $56.2 billion) and growth from Shopify Payments. The company announced an exciting partnership with Amazon (NASDAQ: AMZN) during the quarter as well, with an app integration allowing U.S. merchants using Amazon's fulfillment network the option to add the "Buy with Prime" app into Shopify Checkout. Transactions through the partnership are processed through Shopify Payments.
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Why Shopify Stock Popped 27% This Week