Canadian e-commerce company Shopify (SHOP, Financial) surged 25% higher after posting better-than-estimated earnings for the previous quarter and an upbeat sales outlook for the current quarter, particularly considering the festive period. Shopify's Q3 shows EPS of $0.35 and $2.16 billion in revenues, which is much higher than analysts' prediction of $0.26 and $2.12 billion, respectively. The company expected full-year earnings to increase between 35% and 37%, higher than FactSet's estimate of about 33%, due to high consumer confidence and better potential for the holiday shopping season.
The fact that increasingly large brands, such as Reebok, Hanes, Vera Bradley, etc, tend to use Shopify as their online retail solution is evidence of Shopify being a leading player in the industry. She's focused on Shopify's mission as a platform for all kinds of merchants worldwide, stressing that arguing from different merchant categories, geographical regions, and business vectors, all the opportunities for the company's growth are more than vast. To support merchants, it has recently included new AI-based utilities to the platform, proving that technology is a key aspect for Shopify to query the competition.
Analysts at Citi reiterated a buy recommendation and continue to maintain that Shopify has a massive total market with very high growth prospects. However, as the growth in Shopify's stocks raised the Canadian market's average, its plans for further growth and improvement of technology received a good deal more positive light from its investors and analysts.
