Shopify shares pop 17% on smaller-than-expected loss

Shares of Shopify

jumped 17% after the e-commerce company reported a narrower-than-expected loss for the third quarter and revenue that beat Wall Street’s estimates.

Loss per share: loss of 2 cents, adjusted, vs. loss of 7 cents expected by analysts according to Refinitiv.

Revenue: $1.37 billion vs $1.33 billion expected, according to Refinitiv. 

Revenue was up 22% from the same quarter last year, but Shopify said the strong U.S. dollar weighed on its sales. Last quarter, Shopify said 2022 will be “more of a transition year, in which ecommerce has largely reset to the pre-Covid trend line and is now pressured by persistent high inflation.” The company saw booming growth during the coronavirus pandemic, when its stock hit new highs, as retailers sought out its services to sell products online. 

Gross merchandise volume, or the total value of merchandise sold on the platform, rose 11% to $46.2 billion in the third quarter. That’s an increase of $4.4 billion over the third quarter of 2021.

(US.SHOP)

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