Shopify Inc. (NASDAQ:SHOP) is one of the top 10 stocks to buy now according to Cathie Wood. On August 6, the company affirmed continued growth in the third quarter after delivering fiscal solid second-quarter results.
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For the fiscal third quarter, Shopify expects its revenue to grow by a mid-to-high twenties percentage rate. It also expects gross profit to increase by a low-to-mid-twenties percentage rate, backed by a free cash flow margin in the mid-to-high teens. The solid guidance comes as Shopify continues to focus on innovation and strategic expansion into the international market.
The solid third-quarter guidance comes as Shopify delivers a 31% year-over-year revenue growth to $2.7 billion, better than the expected $2.54 billion. However, earnings per share missed the forecast, coming in at $0.27 against a forecast of $0.29. Free cash flow margin also improved by 16% marking the eighth consecutive quarter of double-digit free cash flow margin expansion.
Shopify Inc. offers an e-commerce platform that enables businesses to create, manage, and scale their online stores. It provides tools for building a website, processing payments, managing inventory, and marketing products. Its solutions allow businesses to sell online and in physical locations, integrating both aspects into a unified platform.
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This article is originally published at Insider Monkey.
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