$Shopify(SHOP)$ After taking s

After taking some time to look through their financials, I view last night’s sell off more as profit taking behaviour rather than a sell due to bad news.

The company is expanding its revenue at a good pace and their fees charged to merchants have increased as well without a drop in users.

Most critics view their drop in operating margins to be a cause for concern but this can be attributed to Shopify’s expansion in the international market as well as a new revenue stream (that is partnering PayPal and OpenAI).

All these new streams do incur higher costs at the start but it’s strengthens Shopify’s value and top line.

Shopify Earnings: Can the AI Checkout Magic Continue?

Shopify will release its third-quarter earnings soon. The stock has rallied since launching its "Instant Checkout" feature in collaboration with artificial intelligence leader OpenAI. Last Wednesday, Shopify hit a new record high of $182. The e-commerce software provider delivered strong results last quarter, with revenue rising 31% yoy to $2.68 billion. Shopify’s implied move stands at ±10.77%. Over the past 5 earnings releases, Shopify’s stock rose 58.33% of the time, with the largest single-day gain being +23.84% and the largest drop being -18.59%.

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