Posts Tagged ‘E commerce’

Shopify released Q3 2021 results and the stock surged 8%!

November 2nd, 2021 Comments off

Investors liked Shopify’s (NYSE, TSX:SHOP) Q3 2021 results!

More and more merchants are using the platform even now as the economic environment starts to normalize.

Total revenue in the third quarter was $1,123.7 million, up 46% year over year.
GMV (Gross merchandise volume or all merchandises sold via the platform) for the third quarter was $41.8 billion, an increase of $10.8 billion or 35% over the third quarter of 2020.

Shopify’s cash position grew year over year to $7.52 billion up from $6.39 billion at December 31, 2020.

Shopify is heavily investing in its growth initiatives:

The company launched Shopify Markets, a product that makes cross-border commerce easier for entrepreneurs. Shopify began rolling out Shopify Balance, a money management product for merchants in the United States, introduced TikTok Shopping to merchants and continued the buildout of its fufillment network.

Therefore Shopify’s adjusted earnings per share fell 28% to $0.81.

Shopify’s share trades at a price/sales ratio of 47 and a price/earnings ratio of 76. Certainly a steep price!

But if you believe that the future of e-commerce will not only be in the hands of a few very big players like Amazon but in the hands of many smaller more specialized merchants than Shopify is a clear „Buy“.

Shopify is the „enabler“ of those merchants and still has enormous growth potential.