Shopify shares soar as results outweigh fears of ecommerce slowdowns By Stocksak

© Stocksak. FILEPHOTO: Shopify’s logo can be seen outside its headquarters at Ottawa, Ontario, Canada on September 28, 2018. REUTERS/Chris Wattie

By Nivedita Balu

(Stocksak) -Shopify Inc beat estimates for quarterly revenue on Thursday and reported a smaller-than-expected loss, powered by businesses turning to the Canadian company’s tools and payment options to scale up their online and offline presence.

The shares of the company that are U.S. listed rose nearly 18% after the results eased investor concerns over a slumping in demand that had wiped out more than three-quarters this year’s market value.

Shopify (NYSE) is best-known as an online platform that helps businesses manage their finances. But, Shopify has expanded to offer offline payments.

The company offers tools to help businesses connect with their customers online and capitalize on the growth of social media influencers. The company’s services have been expanded by the purchase of Deliverr, an online fulfillment company.

D.A. D.A.

Shopify expects gross merchandise volumes (GMV), which is the total sales through the platform, “to outperform the wider U.S. retail industry” for the holiday quarter.

GMV increased 11% to $46.2 Billion in the third quarter that ended Sept. 30,

Charlie Miner, Third Bridge analyst, stated that Shopify’s GMV growth is a sign of market resilience and is a positive indicator for the holiday shopping season.

The quarter’s revenue rose 22% to $1.4billion, compared to estimates of $1.34billion.

Refinitiv IBES data shows that the company lost 2 cents per shared on an adjusted basis. This is compared to a loss of 7 cents.

Forte cautioned that inflation and a weak consumer purchasing environment will continue to be challenges as shoppers spend more discretionary income on travel.

News Source and Credit

Stocksak Editorial

We are a financial blog that covers topics such as investing, saving, spending, and earning more money. Please feel free to peruse our site and read any of the articles that catch your interest.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button