Zacks Strategist Shaun Pruitt Discusses the Hype for Shopify Stock

Financial Performance - Shopify's Q3 gross merchandise value increased 22% year-over-year to $562 billion [4] - Shopify's subscription revenue grew, fueled by monthly recurring revenue, which soared 25% to $142 million [4] - Shopify's top line expanded 32% to $284 billion, beating Q3 estimates of $275 billion [4] - Shopify's free cash flow spiked 78% during Q3 to $57 million compared to $285 million in the compared to quarter [6] - Shopify's Q3 earnings of 34 cents per share dipped from EPS of 36 cents a year ago [5] Growth & Future Outlook - Shopify expects Q4 revenue growth in the mid to high 20% range [8] - Shopify expects to maintain full year free cash flow margins in the double digits [9] - Shopify's top line is expected to span over 20% in fiscal 2025 and fiscal year 26 with projections edging north of $13 billion [9] - Shopify's annual EPS is now slated to be up 11% in fiscal year 25 and is projected to increase another 21% in fiscal year 26 to $176 per share [9] Strategic Initiatives & Market Position - Shopify announced a partnership with open AI in September to integrate commerce directly into chat GPT [2] - Shopify's commerce operations have been enhanced with AI tools, payment installments, and expanded point of sales capabilities [3]