5 Stocks Making Headlines After Earnings Reports

4. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 85

Shares of Shopify Inc. (NYSE:SHOP) rose over seven percent on Thursday, 28 October 2021, despite announcing lower-than-expected profit and sales for the third quarter. The Canadian e-commerce giant reported adjusted earnings of 81 cents per share, missing the consensus forecast of $1.23 per share.

Revenue came in at $1.12 billion, also below analysts’ average estimate of 1.15 billion. Shopify Inc. (NYSE:SHOP) had posted adjusted earnings of $1.13 per share on revenue of $767 million for the comparable period of 2020.

Looking at the key growth indicators, revenue from subscription solutions in the quarter jumped 37 percent on a year-over-year basis to $336.2 million amid a surge in the number of vendors joining the platform. In comparison, merchant solutions revenue climbed 51 percent versus last year to $787.5 million.

Commenting on the quarter, CFO Amy Shapero said:

“Our results show that Shopify is executing well, giving our merchants the tools they need to compete in differentiated ways in a growing number of markets. We remain focused on simplifying commerce for our merchants so they can take full advantage of what digital makes possible and reimagine retail.”