๐ Shopify Doubles Revenues, Smashes Wall Street Expectations
What you need to know before US markets open ๐บ๐ธ

Heyย Global Investor, here's what you need to know before the US markets open.
Market Snapshot ๐
S&P 500ย (Wednesday Close) 3,258.44ย +40.00ย (1.24%)
NASDAQย (Wednesday Close) 10,542.94ย +140.85ย (1.35%)
FTSE 100ย (5 PM IST) 6019.82 -111.64 (1.82%)
NIFTY 50ย (Today's Close) 11,102.15ย โ100.70ย (0.90%)
USDINRย (5 PM IST) 74.81ย (1 Year +8.81%)
๐Shopify Comfortably Beats Wall Street Expectationsย
Shopify stock scaled new highs as pandemic drives e-Commerce Growthย
What Happened?ย On Wednesday, Shopify stocks rose as high as 10%, driven by increased online shopping due to the Covid-19 pandemic. ย
The company reported Q2 earnings yesterday and trounced earnings and revenue expectations. The gross merchandise value (GMV) โ the value of what sells on the platform โ 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.
Shopifyโs 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.ย Revenue doubledย to $714.3M during the same time frame, surpassing the market expectation of $511.4M. Merchant solutions revenue climbed 148% to $517.9M vis-ร -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 companyโs narrative.
Market Reaction:ย Shopifyโs 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 +68.59ย (+6.96%)
Analyst Rating (33 Ratings) BUY 33%ย ย HOLD 58% ย SELL 9%
Newsworthyย ๐ฐ
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Being Optimistic:ย AstraZeneca Tops Estimates as Coronavirus Vaccine Hopes Persist (AZNย +0.48%)
Later Todayย ๐
6.00ย pm IST: GDP
6.00ย pm IST: Initial jobless claims (regular state program)
6.00ย pm IST:ย Continuing jobless claims (regular state program)
6.00 pm IST:ย Continuing jobless claims (total, NSA)
Before Market Open: Eli Lilly and Co Earningsย
After Market Close: Amazon.com Inc Earnings
Fun Fact of The Dayย ๐
The Largest Flower in the World is Rafflesia Arnoldii. It can Grow as Big as an Umbrella.
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