Shopify Inc (SHOP)

[Thompson_AMM]

Shopify Stock Soars On Earnings Beat, Reacceleration Of Sales Growth

Shares of e-commerce firm Shopify (SHOP) soared Thursday after the company reported a smaller-than-expected loss for the September quarter and revenue that topped analyst estimates. SHOP stock was up by double digits on the news. Canada-based Shopify said it lost 2 cents per share on an adjusted basis. Revenue for SHOP stock rose 22% to $1.4 billion, the company said. Revenue growth reaccelerated after six quarters of slowing growth due to the coronavirus pandemic fading and online shopping normalizing. SHOP stock surged 17.3% to close at 34.10 on the stock market today. Prior to Thursday, Shopify stock had retreated 78% in 2022 amid the bear market.
Shopify "may have benefited from the strength in the U.S. dollar versus the Canadian dollar with its revenues in U.S. dollars and many of its operating expenses in Canadian dollars." Shopify sets up e-commerce websites for small businesses, and partners with others to handle digital payments and shipping. Meanwhile, the company plans to cut 10% of its workforce. SHOP stock holds a Relative Strength Rating of 13 out of a best-possible 99.