Shopify Shares Drop 9% After Q3 GMV Misses $120.03 Billion Estimate
Updated
Updated · CNBC · Nov 3
Shopify Shares Drop 9% After Q3 GMV Misses $120.03 Billion Estimate
3 articles · Updated · CNBC · Nov 3
Summary
Shopify fell 9% in early Tuesday trading after third-quarter gross merchandise volume came in at $119.15 billion, below the $120.03 billion analysts expected.
Revenue also narrowly missed forecasts at $3.74 billion versus $3.75 billion expected, while subscription gross profit reached $661 million, nearly $20 million short of estimates.
Subscription revenue of $836 million missed the $848.1 million consensus, even as merchant revenue and merchant gross profit topped expectations and adjusted EPS beat at 49 cents versus 46 cents.
For the fourth quarter, Shopify guided to year-over-year revenue growth in the low 30% range, roughly in line with but slightly softer than the 32.1% analysts had projected.
Could Wall Street's panic over a minor revenue miss blind investors to the massive cash flow generated by Shopify's dominant merchant solutions?
As AI shopping agents bypass traditional storefronts, can Shopify's massive investment in merchant tools prevent it from becoming just a backend payment processor?