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🛒 Shopify Doubles Revenues, Smashes Wall Street Expectations

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🛒 Shopify Doubles Revenues, Smashes Wall Street Expectations

What you need to know before US markets open 🇺🇸

Jul 30, 2020
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🛒 Shopify Doubles Revenues, Smashes Wall Street Expectations

www.winvestacrisps.in

Hey Global Investor, here's what you need to know before the US markets open.

Market Snapshot 📈

S&P 500 (Wednesday Close) 3,258.44 +40.00 (1.24%)

NASDAQ (Wednesday Close) 10,542.94 +140.85 (1.35%)

FTSE 100 (5 PM IST) 6019.82 -111.64 (1.82%)

NIFTY 50 (Today's Close) 11,102.15 −100.70 (0.90%)

USDINR (5 PM IST) 74.81 (1 Year +8.81%)


🛒Shopify Comfortably Beats Wall Street Expectations 

Shopify stock scaled new highs as pandemic drives e-Commerce Growth 

What Happened? On Wednesday, Shopify stocks rose as high as 10%, driven by increased online shopping due to the Covid-19 pandemic.  

The company reported Q2 earnings yesterday and trounced earnings and revenue expectations. The gross merchandise value (GMV) – the value of what sells on the platform – reached $30.1B, easily beating Wall Street expectations of $19.9B. The number of new stores on the platform was up 71% in Q2 compared to Q1, and the company expects the momentum to continue into the next quarter.

Shopify had launched a 90-day free trial of its standard plan in May and expects the newly signed-up customers to turn into paying merchants once the trial ends. While the GMV from in-store sales declined 29% due to the lockdown, the company hopes to recover on that front as the stores gradually reopen.

Shopify’s Q2 net income stood $36M against a loss of $28.7M, from the same time last year. Adjusted earnings per share rose from 10 cents to $1.05. Revenue doubled to $714.3M during the same time frame, surpassing the market expectation of $511.4M. Merchant solutions revenue climbed 148% to $517.9M vis-à-vis consensus estimates of $312M.

The company has teamed up with names such as Walmart, Facebook, Pinterest, Stripe, and the popularity of Shopify Plus, its premium service targeting big brands, is a bright spot in the company’s narrative.

Market Reaction: Shopify’s stock has been a big winner during the pandemic with 174% YTD growth and rose 70% over the past quarter. The stock price settled on Wednesday at $1,053.59, a near 7% increase for the day.

Shopify Snapshot

SHOP $1,053.59 +68.59 (+6.96%)

Analyst Rating (33 Ratings) BUY 33%  HOLD 58%  SELL 9%


Newsworthy 📰

  • Copy That: Zuckerberg Admits Facebook Copied Its Competition (FB+1.38%)

  • Sim City: Microsoft's New Flight Simulator is a Beautiful Work in Progress(MSFT +1.01%)

  • Being Optimistic: AstraZeneca Tops Estimates as Coronavirus Vaccine Hopes Persist (AZN +0.48%)


Later Today 🕒

  • 6.00 pm IST: GDP

  • 6.00 pm IST: Initial jobless claims (regular state program)

  • 6.00 pm IST: Continuing jobless claims (regular state program)

  • 6.00 pm IST: Continuing jobless claims (total, NSA)

  • Before Market Open: Eli Lilly and Co Earnings 

  • After Market Close: Amazon.com Inc Earnings


Fun Fact of The Day 🌞

The Largest Flower in the World is Rafflesia Arnoldii. It can Grow as Big as an Umbrella.


You can start investing in US stocks with platforms like Winvesta. Get an account in as little as 15 minutes and start building your global portfolio today.

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🛒 Shopify Doubles Revenues, Smashes Wall Street Expectations

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