Shares of Shopify (SHOP 1.43%) were soaring in November. The Canadian e-commerce software company reported strong third-quarter results, benefited from improving macroeconomic data, and achieved impressive sales over the key Black Friday weekend.
According to data from S&P Global Market Intelligence, the stock finished the month up 54%, with a significant increase early in the month following the earnings report.
Shopify’s Strong Performance
Shopify shares surged 22% on Nov. 2 after beating estimates on both the top and bottom lines. Gross merchandise volume (GMV) rose 22% to $56.2 billion, driving revenue up 25% to $1.71 billion, which exceeded estimates. The company also saw a significant improvement in margins, leading to a notable increase in gross profit and a strong bottom-line performance.
Additionally, Shopify reported a $555 million unrealized gain on equity stakes in companies, leading to a per-share profit that surpassed consensus estimates.
Throughout the month, Shopify continued to gain as the broad market moved higher and investors anticipated positive market conditions. The company also reported impressive GMV during the Black Friday/Cyber Monday weekend, further driving up its stock price.
Future Outlook
Shopify’s guidance for the remainder of the year and its strong performance in the fourth quarter indicate potential for further growth. Despite its expensive stock, the company’s potential for margin expansion and rapid top-line growth position it for long-term success in the market.