Shopify Shares Drop Despite Beating Q3 Revenue and EPS Estimates
Shopify (SHOP) shares fell as much as 13.2% following its third-quarter earnings report, despite the company exceeding analyst expectations for both revenue and adjusted earnings per share. The e-commerce platform reported $3.74 billion in revenue, a 32% year-over-year increase, and an adjusted EPS of $0.49, surpassing estimates of $3.73 billion and $0.46 respectively. Despite the top-line beat and upbeat Q4 guidance projecting low-thirties percentage revenue growth, investors reacted negatively to specific metrics that missed consensus. Gross merchandise volume (GMV) reached $119.2 billion, falling short of the predicted $120.1 billion, while subscription revenue of $836 million also trailed analyst expectations of $850 million. The sell-off highlights investor sensitivity toward Shopify's high valuation multiple.
Tickers: $SHOP
Topics: earnings report e-commerce revenue growth stock price movement
Read the full article at Motley Fool
Part of the story Arm Holdings Shares Drop Over 11% Despite Beating Revenue and Earnings Estimates (11 articles)