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Shopify Stock Soars on Q3 Gains

Shopify Inc. (NYSE, TSX: SHOP) reported its third-quarter 2024 financial results this morning, recording a quarterly revenue of $2.16 billion, a significant 26% increase from $1.71 billion during the same quarter last year and an increase from $2.08 billion in the previous quarter. This marks the sixth consecutive quarter of more than 25% revenue growth, a streak that excludes any impact from Shopify’s divestment in logistics.

A major factor behind Shopify’s revenue increase is its expanding Gross Merchandise Volume (GMV), which reached $69.7 billion for Q3 2024. This figure indicates a 24% year-over-year rise from the $56.2 billion reported in Q3 2023, driven by heightened sales activity across its vast merchant network. The Q3 2024 GMV also grew from the prior quarter, where it stood at approximately $67 billion.

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What’s going on?

• Taiwan Blocks TSMC From Making 2nm Chips in the US (theDeepDive)

• Panama Canal says shipping rebound is underway after record drought (CNBC)

• Immigration minister says ‘not everyone is welcome’ to come to Canada as concerns grow about U.S. deportation plans (Globe)

• Large Scale Gold Asset Along Trans Canada Highway | Goldshore Resources with Michael Henrichsen (theDeepDive)

• 28% of credit card users are still paying off last year’s holiday debt. But that’s an improvement (CNBC)

• Silver47 To Begin Trading On November 14 (theDeepDive)

• Canada cancels automatic 10-year multiple-entry visas, tightens rules (CTV)

• Exxon Says Trump Should Keep U.S. in Paris Climate Pact (WSJ)

• Bitcoin Crosses $84,000 As MicroStrategy Drops $2 Billion Acquiring 27,200 More BTC (theDeepDive)

• Doug Ford calls Mexico ‘backdoor’ for Chinese goods, proposes Canada-U.S. free trade deal (Globe)

What’s the latest?

• Netflix: Netflix's ad-supported tier has reached 70 million monthly active users globally, accounting for over 50% of new sign-ups in markets offering the option. Netflix added 5.1 million subscribers last quarter, reaching a total of 282.7 million memberships across all plans. Starting next year, Netflix will shift investor updates from subscriber numbers to revenue-focused metrics. The company has also launched its own ad platform, with plans to expand globally by 2025.

• Bird Flu: Marion Island, home to half of the world's wandering albatrosses, faces a bird flu outbreak that has potentially impacted brown skuas, wandering albatrosses, and southern giant petrels. The high pathogenicity avian influenza (HPAI) strain, likely spread by migratory birds, was first suspected in September. Conservation teams trained to detect the disease are working to contain its spread, which also threatens the island’s massive populations of seabirds, penguins, and seals.

• Port Strikes: Labour Minister Steven MacKinnon has ordered ports in British Columbia and Montreal to resume operations, moving unresolved labor disputes to binding arbitration. He cited the stoppages’ severe impact on supply chains, thousands of jobs, and Canada’s trade reputation. The intervention follows business calls for government action and aims to restore port activities within days.

• Shopify: Shopify reported Q3 net income of $828 million, a 15% increase from last year, with revenue rising 26% to $2.16 billion. Subscription solutions grew to $610 million, while merchant solutions reached $1.55 billion. Excluding equity investments, net income was $344 million, nearly doubling from last year. For Q4 2024, Shopify anticipates revenue growth in the mid-to-high 20% range year-over-year.

• Crypto: Crypto traders are optimistic that President-elect Trump’s administration will foster a more favorable regulatory environment for digital assets, potentially spurring industry growth. Since his election, bitcoin has surged near $90,000, a trend dubbed the "Trump Pump." CEOs from Robinhood and Coinbase highlight hopes for clearer U.S. crypto regulations, contrasting with the Biden administration’s tougher stance led by SEC Chair Gary Gensler.

First Majestic Silver Q3 2024 earnings

The stock market and stuff

• Shopify Stock Jumps as Q3 2024 Results Show Strong Revenue Jumps and Profit Margins (theDeepDive)

• Wall Street bankers on course for up to 35% bonus bump (FT)

• NexGen Energy Expands Discovery At Patterson Corridor East (theDeepDive)

• Amazon steps up effort to build AI chips that can rival Nvidia (FT)

In the juniors

• Snowline Gold Intersects 1.06 g/t Gold Over 380.4 Metres At Valley (theDeepDive)

• Gatos Silver’s Q3 2024 Results Show Record Profits As Merger Looms (theDeepDive)

• American Potash To Rebrand To American Critical Minerals (theDeepDive)

• Golden Cariboo Acquires Additional Claim Adjacent To Historic Quesnelle Quartz Mine (theDeepDive)

FULL DISCLOSURE: ATHA Energy is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of ATHA Energy. The author has been compensated to cover ATHA Energy on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.