Microsoft, H&M, Shopify and Stripe have joined forces with companies that prioritize sustainability to invest in technologies aimed at capturing carbon. Carbon capture involves extracting carbon dioxide from the atmosphere either through means, like reforestation or through methods such as carbon air capture. This approach has the potential to support the objectives set by the Paris Climate Agreement in terms of preventing temperature increases, beyond 1.5 degrees Celsius.
Shopify has had an 86% year-to-date increase in revenue and Gross Market Value sales in 2023, with $1.7 billion in revenue and $55 billion in GMV sales. This marks a 31% year-over-year revenue increase, nearly double the 16% reported the previous year. The company's product attach rate has improved to 3.08%, meaning that each dollar spent on its platform generates greater revenue. Subscription revenue has increased by 21% year on year to $444 million, with a gross margin of 81% in the Subscription Solution sector. Management predicts a 20% increase in revenue and an increase in free cash flow due to cost-cutting measures in the coming quarter. Overall, Shopify is a developing growth stock with the potential for further expansion.
Shopify Inc. has seen a 2,500% return since its IPO in 2015, thanks to rapid growth and positive free cash flow. Despite a slowdown in sales, its revenue growth rate remains 35% above average. However, its high valuation makes it a tough sell for value investors.
In case anyone's still confused - or thinks this benefits AMZN more than SHOP -- here's the explainer: "As part of the deal, Buy with Prime will be accessible via Shopify’s checkout service, and transactions will be processed by Shopify Payments." Read that last part again: "and transactions will be processed by Shopify Payments." Today's deal is fiscally irrelevant to AMZN. But big for SHOP.
Amazon, Shopify Strike Deal to Open Amazon Logistics to Sellers
Wed, August 30, 2023 at 5:22 PM MDT·
(Bloomberg) -- Amazon.com Inc. and Shopify Inc. have struck a deal to allow merchants who pay for Shopify’s e-commerce tools to use Amazon’s logistics network.
The two companies, which both sell e-commerce software and services to brands and merchants, say Amazon’s “Buy with Prime” will soon be among the tools available to Shopify’s merchants in the US. The program started Wednesday for invited Shopify sellers, and will roll out to all Shopify merchants who want to use Amazon’s logistics network by the end of September, Amazon said in a statement.
Shopify shares climbed more than 2% in extended trading, while Amazon stock rose less than 1% after the partnership was announced.
Amazon launched Buy with Prime last year, a move widely seen as an effort to blunt the momentum of Shopify. The Canada-based company grew rapidly in recent years by building e-commerce tools that promised to help brands sell goods from their own websites, rather than on a marketplace like Amazon or eBay.
Amazon, the largest US online retailer, commands a gigantic customer base, but has drawn complaints from some of its sellers for dictating terms and being slow to respond to their concerns.
Buy with Prime enables merchants who use Amazon’s payment and fulfillment services to include Amazon’s checkout service and speedy shipping guarantees on items sold from their own sites. Amazon says the integration makes shoppers more likely to make purchases from unfamiliar brands or websites because they trust the experience with Amazon.
Under the deal announced Wednesday, Shopify Payments will process the payments through the company’s checkout service. Previously, Shopify had warned merchants who used Buy with Prime that the integration violated Shopify’s terms of service, and prevented it from protecting against fraud, according to Marketplace Pulse, which tracks online sellers.
Shopify plans to introduce a new level of customer support for its largest enterprise merchants, as it works to attract bigger companies.
Shopify has shifted its focus to enterprise e-commerce. In January, the company launched Commerce Components, allowing merchants to integrate Shopify's software into their existing tech stack. In June, Shop Pay was made available to non-Shopify enterprise merchants through Commerce Components. The typical Shopify merchant makes about $35,000 in sales a year, while the typical merchant using Shopify Plus generates an estimated $7 million in sales annually. With Commerce Components, Shopify could target merchants with sales closer to the $500 million range. Mattel, which generated over $5.4 billion in sales in 2022, was an early user of Commerce Components. Shopify's work to attract enterprise merchants through Plus and Commerce Components was recognized in Gartner's Magic Quadrant, a research report for larger e-commerce businesses. The 2023 version of the report evaluated Shopify Plus and ranked the platform at the top of its peers in terms of execution. However, Shopify's Support organization has been undergoing changes, with AI at the center of the company's plans for the division. Merchants with less than $2 million in annual sales will need to use Shopify's help center to reach Plus Support staff.
Despite excellent results projections, Shopify stock fell. After a tremendous 89% year-to-date gain, investors expected more from the company. Shopify announced $0.14 earnings per share for the second quarter, exceeding the $0.05 expectation. However, the corporation must do more to stay up with the recent rate of recovery gains. The true opportunity for Shopify comes in an increase in consumer spending. Despite the impending recession, consumer spending is likely to rise over the following 18 months, benefiting Shopify and the rest of the e-commerce industry.
I've been watching this for 6 months now and did not take a position until today. I think Shop found the bottom and I am on the way back up again. I'm in at $56.32. I like the decent option premium at 70 for January; this is the reason I bought it; it has a better premium than BBIO
Shopify Inc. had a $5 sign-up fee for the first 50k merchants, but once they reached 100k, the fee increased to $10. QNX has signed 24/25 top EV OEMs, with 94 and 114 design wins the previous year. They closed a large government cybersecurity contract in the last quarter, bringing their total revenue to $122 million. Existing contracts total $100 million per quarter, with new ones costing more. It's simple math.
Shopify Inc. $SHOP Total Debt (mrq) $1.4B Book Value Per Share (mrq) $6.61
MoffettNathanson Upgrades Shopify to Outperform From Market Perform, Adjusts Price Target to $76 From $35
08:34 AM EDT, 07/24/2023 (MT Newswires) -- Shopify (SHOP) has an average rating of outperform and price targets ranging from $41 to $80, according to analysts polled by Capital IQ.
Shopify employee broke his non-disclosure agreement and revealed that the company is replacing laid-off employees with artificial intelligence (AI) to save costs. The employee also revealed that Shopify promised job security to its employees but launched mass layoffs in July of that year.
Shopify Inc NYSE: SHOP
Information Technology : IT Services | Large Cap Growth | Based in CanadaCompany profile
Shopify Inc. is a provider of Internet infrastructure for commerce, offering tools to start, grow, market, and manage a retail business. The Company's software enables merchants to run their business across all their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. The Shopify platform provides merchants with a single view of their business and customers across all their sales channels and enables them to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing, all from one integrated back office. The Shopify application program interface (API) is developed to support custom storefronts that let merchants sell anywhere. It enables businesses in more than 175 countries, and it offers various brands, such as Allbirds, Gymshark, Heinz, Tupperware, FTD, Netflix, and FIGS, among others.
Shopify has gained popularity as physical stores reopen, reshaping online shopping. With new tools, Shopify stock rose by over 6% in Thursday's trading session, thanks to the reopening of physical stores and the resurgence of online shopping.
Roku Brings Shopify Checkout to TV Streaming
Tue, July 11, 2023 at 7:00 AM MDT·
For the first time ever, viewers will be able to purchase products directly from Shopify Merchant ads on the largest screen in the home, simply by pressing OK on the Roku Remote
SAN JOSE, Calif., July 11, 2023--(BUSINESS WIRE)--Today, Roku (Nasdaq: ROKU), the #1 TV streaming platform in the U.S., Canada, and Mexico*, announced a first-of-its-kind partnership with Shopify that provides viewers the ability to purchase products from Shopify merchants directly from their TV through Roku Action Ads.
Upon seeing an ad for a Shopify merchant, viewers can simply press OK on their Roku remote to learn more about the product and purchase it directly from their TV. They will be able to check out with Roku Pay, Roku’s payments platform, and return to their streaming experience once they have completed the purchase. Purchasers will receive email confirmation of their order directly from the merchant once the transaction has been processed.
In this latest integration with Roku Action Ads, Roku brings a seamless checkout experience to ads being streamed on the platform. Roku Action Ads are any advertisements on Roku streaming devices that provide a down funnel action, such as sending users a text, scanning a QR code, or making a purchase. Integrating Shopify purchases into Action Ads is the first commerce integration for independent Shopify merchants on TV streaming, creating a completely new advertising channel for Shopify merchants to explore. Men’s apparel brand True Classic, the game-based connected rower Ergatta, and wellness brand Olly have signed on as initial partners.
"Bringing a Shopify purchase experience to television for merchants is an industry first, and innovation opportunities like these are precisely the reason I came to Roku," said Peter Hamilton, Senior Director of Ad Innovation at Roku. "Roku democratizes access to TV advertising, and now, we’re collapsing the funnel for Shopify’s merchants. This is a great example of Roku’s unique platform position to make advertisers unmissable across the streamer’s journey, from power on to purchase complete."
"Offering a great purchase experience for customers and having sound channel measurement are critical to True Classic's success," said Paige Becker, Vice President, Growth at True Classic. "Roku Action Ads address both these needs, providing a frictionless path to purchase for customers while allowing us to measure the impact of this strategy with the end-to-end Shopify integration. Merging performance-based tactics with the scale of TV is a win-win, and we are excited to explore Roku’s innovation."
"Our commerce efforts are all about meeting our target consumers where they are, and providing a seamless path to purchase," said Saaj Parikh, Director of Marketing, Ergatta. "Integrating the Shopify shopping experience on the Roku platform is a no-brainer for us. We’re thrilled to start experimenting with Roku Action Ads and tap into the scale of Roku."
This unique experience shortens the advertising funnel from brand awareness to purchase on the largest screen in the home. Shopify advertisers receive more customer data and insight into purchasing trends, plus point-of-sale access to Roku’s audience, marking a major milestone for Roku’s ongoing commerce partnership with Shopify. Now, viewers can purchase directly from the screen.
"Shopify is on a mission to make commerce better for everyone, and by partnering with Roku to make Shopify Checkout available through new channels, we are making it easier for more brands to drive deeper engagement with shoppers and reach new audiences," said Mani Fazeli, Director of Product, Checkout at Shopify.
It did a 10:1 split so it actually up more. You may be new to investing.
Shopify reported it would reduce its workforce by 20 percent after 1,000 employees were laid off last summer. The company's first-quarter earnings report, released on May 4, also stated that the company would sell its merchant's tool, Shopify Logistics, to supply chain management company Flexaport.
Shopify is not being audited. The CRA is requesting business data to verify Shopify stores are tax compliant, not Shopify themselves.
PayPal got hit with the same situation and now reports all business account activities to the CRA annually.
This is not a big deal at all.
(Shopify launches fight against 'patent trolls' and their funders, files Texas lawsuit)
Shopify Inc. is waging a court battle against patent trolls, who often target small businesses and startups that can't afford to fight or lose legal battles, stifling innovation. The company claims that patent trolls often target small businesses and startups that can't afford to fight or lose a legal battle, thus stifling innovation. Shopify general counsel Jess Hertz stated that patent trolls "lacily sit back, burying hard-working entrepreneurs in piles of legal paperwork." Shopify found that companies settling or losing patent troll cases reduce investment in research and development by an average of more than $160 million over the two years following the case. Additionally, 90% of patent litigation cases filed each year are abandoned or settled, making "winners" out of the patent trolls and victims of forward-thinking businesses who put in the work to create and innovate. Shopify is pursuing litigation to identify who is funding patent trolls in cases lodged against the company. Shopify filed a motion in a Texas court demanding Lower48 IP LLC, which has connections to a data analysis and portfolio management services provider in the oil and gas industry, reveal any third-party interests it has. Shopify alleges that Lower48 may be receiving funding from a third-party for some or all of Lower48's legal fees. Lower48 lawsuit lawyers delayed responding to comment request.
So if some big fish boost the US stock price by moving some big volume, like what is happening today, then does the Canadian stock price basically have to leap up when the market reopens tomorrow? It appears to have happened in the past.
I think the big institutional shareholders are playing with SHOP.
(Shopify stock blasts off with a 31% gain in just 48 hours - and experts say it's just getting started!)
The company reported some impressive numbers and underwent some significant changes, which helped the stock of Shopify soar last week. Investors praised the quarter as well as developments that might help put the e-commerce tycoon back on track. The stock price of Shopify has fallen dramatically in 2022. I believe that Shopify stock is in a position to be productive once more now that shares have had some time to settle down. Undoubtedly, after a security has lost more than 31% in just two days, it is difficult to pursue it. I've urged readers in numerous previous articles not to overlook Shopify and that the company was probably priced much lower than it should be.
For the full year, analysts expect Shopify revenue to rise 19% to $6.7 billion as its adjusted EPS stays flat. But based on those estimates and Shopify's enterprise value of $53.5 billion, its stock still isn't cheap at 8 times this year's sales.
In the last 5 years, Shopify has seen its revenue grow by 40% per year. That's well above most for-profit companies. Meanwhile, its share price performance certainly reflects the strong growth, given that the share price grew at 31% per year, compound, during the period. This suggests the market has well and truly recognized the progress the business has made. Shopify seems like a high-growth stock, so growth investors might want to add it to their watchlist.
Shopify narrowing its ambition, sells Deliverr, other pieces
7:05 AM ET, 05/04/2023 - Associated Press
NEW YORK (AP) — Shopify, the e-commerce company viewed as a growing competitor to Amazon, is selling the two biggest pieces of its fulfillment network and abandoning its logistics ambitions.
It's a remarkable reversal after the Canadian company's multiyear effort to build its own warehousing and delivery services.
Most of Shopify’s fulfillment assets will be acquired by logistics provider Flexport in an all-stock deal that also includes the sale of the shipping service company Deliverr, the company said Thursday. Shopify bought Deliverr just last year for $2.1 billion.
In exchange, Shopify will receive a stake of about 13% in Flexport, bringing its total ownership in the privately held company up to the high-teens, the company said. Flexport will become the official logistics partner for Shopify, which provides e-commerce tools for merchants. It will also acquire Shopify's warehouses.
Another major part of the Shopify’s network, the warehouse automation firm 6 River Systems, or 6RS, is being sold to the British grocery-tech company Ocado Group, Shopify spokesperson Stephanie Ross said.
Shopify's logistics network is comprised of Deliverr, 6RS and the SFN App, which allows merchant to track shipments.
The sell offs come as the company based in Ottawa, Ontario, is aiming to cut down on costs amid a post-pandemic slowdown in online shopping and high inflation.
The moves will also allow it to offload employees it acquired under the deals, though it declined to say how many would be trimmed from its payroll. Last year, Shopify cut 10% of its workforce and reportedly laid off dozens of other employees before and after that announcement.
Shopify is returning to its roots, President Harley Finkelstein said an interview addressing only the Flexport deal.
“Fundamentally, this lets Shopify get back to what we do better than anyone on the planet, which is the retail side of the business,” Finkelstein said.
Meanwhile, Flexport CEO Dave Clark said he believes Shopify is doing “some of the hardest things the leadership team has to do, which is change direction when you learn new information.”
Flexport, which was last valued at $8 billion, declined to share more information about its financials. But analysts say its valuation has likely gone down in recent months given the tough investment environment.
Even if the company were still valued at $8 billion, Shopify is selling the assets at a loss, given the $2.1 billion it paid just for Deliverr last year. Under the prior valuation, the e-commerce company would get roughly $1 billion worth of Flexport stock.
Shopify declined to provide the terms of the Ocado Group deal, and a representative for that company could not immediately be reached for comment. The e-commerce company had purchased 6 River Systems in 2019 for $450 million