Why Shopify Stock Skyrocketed 48% Last Month

Core Insights - Shopify's stock surged 47.8% in November, driven by strong performance from its merchant customers [1] - The company's gross merchandise volume (GMV) reached nearly $70 billion in Q3 2024, reflecting a 24$2.2 billion, with a free cash flow margin of 19% [3] Financial Performance - Shopify's Q3 net income was $828 million, bolstered by equity investments, with an adjusted net income of$344 million [4] - Following strong Q3 results, many Wall Street analysts raised their price targets for Shopify stock, indicating positive market sentiment [5] - The company's valuation is increasing, necessitating sustained strong growth to justify the higher valuation [6] Growth and Investment Strategy - Shopify's free cash flow is reinvested into the business rather than used for share repurchases or dividends, supporting future growth [7] - The company aims to maintain a strong growth rate and free cash flow margin, fostering long-term optimism among shareholders [7]