Shopify
SHOP
is benefiting from the e-commerce-boom-induced growth in the merchant base. Robust uptick in Shopify Shipping, Shopify Payments and Shopify Capital is expected to have driven top-line growth in third-quarter 2021, which it is set to report on Oct 28.
The company has been focused on winning merchants on a regular basis, based on product offerings including Shop Pay and Shop Pay Installments, as well as features like end-to-end order tracking. Solid adoption of new merchant-friendly applications holds promise.
Partnerships with
Facebook
FB
and
Alphabet
GOOGL
division Google are expected to expand Shopify’s merchant base.
The Zacks Consensus Estimate for third-quarter Gross Merchandise Volume is pegged at $43.51 billion, indicating year-over-year growth of 40.7%.
Click here
to know how Shopify’s overall third-quarter results are likely to be.
E-Commerce Spending to Aid Shopify’s Q3 Growth
The massive growth in e-commerce spending is expected to have driven Shopify’s third-quarter results. The company’s cloud-based platform has been capable enough to address the growing needs of merchants at a time when social media, mobile devices and data analytics are transforming the e-commerce market place.
Shopify Inc. Revenue (Quarterly YoY Growth)
Shopify Inc. revenue-quarterly-yoy-growth
|
Shopify Inc. Quote
Net new merchants on Shopify are expected to have improved due to expanded sales channels like Alipay, Pinterest, eBay and
Amazon
AMZN
.
The Zacks Consensus Estimate for Revenues: Merchant Solutions stands at $798 million, indicating 53% growth from the figure reported in the year-ago quarter.
Shopify’s has a rich partner ecosystem, which is expected to have been a growth driver. Shopify is also banking on its new mobile shopping app — Shop, and applications like Shopify Email, Shopify Plus Admin, Shop Pay Installments, Shopify Flow and Shopify Balance. These features are expected to have bolster customer engagement in the third quarter.
The Zacks Consensus Estimate for the Monthly Recurring Revenue (MRR) stands at $103 million, indicating growth of 39.2% from the figure reported in the year-ago quarter.
The consensus mark for revenues: subscription solutions is pegged at $352 million, suggesting 43.7% growth from the figure reported in the year-ago quarter.
Shopify currently has a Zacks Rank #4 (Sell).
You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report