Shopify Q3 Earnings, Operating Income Light, Revenue Beats

Core Insights - Shopify reported third-quarter operating income of $434 million, which was slightly below estimates of $435.2 million, while revenue increased by 32% to $2.844 billion, surpassing the expected $2.757 billion [1][2] - The company anticipates revenue growth in the current quarter ending December 30 to be in the mid-to-high twenties percentage range year-over-year, with gross profit dollars expected to grow at a low-to-mid twenties percentage rate [2] - Shopify's gross merchandise volume from merchant customers rose 32% to $92 billion, exceeding estimates of $89.12 billion [2] Financial Performance - Operating income rose 53% year-over-year to $434 million, missing estimates slightly [1] - Revenue climbed 32% to $2.844 billion, beating analyst predictions [2] - Gross merchandise volume increased by 32% to $92 billion, surpassing expectations [2] Market Reaction - Shopify stock fell 3% to around $168 in early trading following the earnings report, despite a 61% increase in stock price since the beginning of 2025 [3] - The stock had previously rallied due to a partnership with OpenAI for an "Instant Checkout" feature, allowing merchants to sell directly within ChatGPT conversations [3][8] Management Changes - Recent departures include Chief Operating Officer Kaz Nejatian and Chief Revenue Officer Bobby Morrison, with Jessica Hertz appointed as the new COO [4] Technical Ratings - Shopify holds a Composite Rating of 96 out of a best-possible 99, indicating strong growth potential [5] - The stock has an Accumulation/Distribution Rating of B, suggesting moderate institutional buying activity [6]