Shopify (SHOP) shares rose 34.3% over the past three months, versus 2.8% for the S&P 500, after Meta connected its Muse AI agent to Shopify's Shop Pay checkout. The stock trades at 16.7 times sales, against 3.1 for the S&P 500, and at 114.8 times earnings, against 21.9. Operating margin over the past twelve months reached 17.8%, the highest in ten years, while second-quarter 2026 revenue grew 33.7% and merchandise value through merchant stores rose 32%. Management expects third-quarter revenue growth in the low 30s, and free cash flow margin was 18% in the second quarter, though management declined to confirm 20% as a new normal. Shopify reports results for the quarter ended September 30 on November 3, 2026, and the stock fell 40% from its peak in last year's tariff shock, versus 19% for the S&P 500.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related news
- Microsoft Had Its Best Quarter in 28 Years. Is it Too Late to Buy the Stock?
Microsoft shares rose almost 38% in the third calendar quarter, their best quarterly performance since 1998, after a period of worry that AI could displace software services. In fiscal Q4 2026, revenue grew 18% to $90 billion, operating income rose 18% to $40.6 billion, and non-GAAP EPS was $4.74, up 23%. Azure revenue grew 43% and surpassed $100 billion for the fiscal year for the first time, while total cloud revenue reached $59.3 billion, up 27%, with commercial remaining performance obligations of $678 billion, up 84%. Microsoft 365 Copilot ended the period with more than 30 million paid seats, and the company continues investing in AI infrastructure and its Maia custom chips. The author argues the long-term outlook remains strong, with the stock trading at 25.1x forward earnings versus an average of 20.9x for IT stocks.
- ARM Stock Is Up 123% This Year. Is It Too Late to Get In?
Arm Holdings (ARM) shares have risen 123% since early January to close at $255 on October 13, but remain 28% below their June 30 close of $355. Arm launched its first silicon product, the Arm AGI CPU developed with lead partner Meta, in March; on the July 29 earnings call, CEO Rene Haas said demand for the chip exceeds $2 billion. On October 13, a Delaware jury found Arm breached a Qualcomm license and awarded $2 in nominal damages, while a judge has yet to rule on whether Qualcomm can stop paying royalties for five years. Analyst ratings stand at 21 Buy, 8 Outperform, 12 Hold, 1 Underperform and 1 Sell, with a mean target of $291, about 14% above the price.
- Is It Too Late to Invest in the Stock Market? History Offers a Crystal Clear Answer.
The S&P 500 has repeatedly hit record highs in recent years, fueled by enthusiasm around AI, prompting worries that a pullback could be near. The article notes that corrections of at least 10% are common: a Charles Schwab study counted 27 since 1974. Bear markets average 409 days with an average loss of 36%, yet long-term investors who held through them have still earned attractive returns, with the index averaging about 10% annually since 1957. A 2020 Schroders study found that holding the S&P 500 for just a month meant losing money 40% of the time after inflation, falling to 20% over five years and to almost zero over 20 years. The article suggests dollar-cost averaging, investing a set amount each month, as a sensible approach during this period of uncertainty.
- Taiwan Semiconductor Stock Hits a New All-Time: Is it Too Late to Invest?
Taiwan Semiconductor Manufacturing holds around 70% of the foundry market and makes chips for many top tech companies, so it benefits from AI chip demand. The stock is up around 50% this year and recently hit an all-time high, giving it a market cap of about $2.3 trillion. Analysts expect the most recent quarter's profit to rise 65% to $23.4 billion, which would mark a sixth straight quarter of record earnings, and revenue so far in 2026 is up more than 40%. The stock trades at a forward P/E of 21, only modestly above the S&P 500 average of around 20, which the article argues is not excessive for a top growth stock. It has pulled back from recent highs, and its expertise and low-cost production may be hard for rivals to match.
- Is Shopify Stock a Buy After Its First Record Close in Nearly a Year?
Shopify (SHOP) closed at $179.22 on Monday, a record close by only 21 cents above its prior high of $179.01 set on Oct. 29, 2025, after climbing about 18% over six trading days. The rally came without new financial results, as shares were lifted by positive Wall Street comments on AI shopping agents; AI-driven orders to Shopify stores in the second quarter tripled from a year earlier, though management said agentic commerce remains small relative to gross merchandise volume. Revenue for the 12 months through June reached about $13.3 billion, up roughly a third, and second-quarter operating income rose 68% to $488 million. The author argues that despite strong growth, the stock is still too expensive at about 98 times trailing free cash flow, with a market cap near $230 billion.
- MercadoLibre vs. Shopify: Which Consumer Stock Is a Better Buy in 2026?
The article compares MercadoLibre (MELI), a Latin America marketplace with the Mercado Pago fintech arm, with Shopify (SHOP), a software platform for merchants worldwide. In FY 2025, MercadoLibre reported revenue of nearly $28.9 billion, up 39.1%, net income of about $2.0 billion and free cash flow of nearly $10.8 billion. Shopify reported revenue of nearly $11.6 billion, up about 30.1%, net income of roughly $1.2 billion and free cash flow of nearly $2.0 billion, though stock-based compensation equal to about 22.1% of its operating cash flow inflates that cash figure. The piece lists MercadoLibre's risks as Asian e-commerce competition, Latin American inflation and currency devaluation, and fintech regulation, and Shopify's as competition from Amazon and exposure to small merchants in downturns.
Related markets
Latest news
- Intel stock pops after JPMorgan gives a Neutral upgrade
JPMorgan (JPM) upgraded Intel (INTC) to Neutral from Underweight. The note points to improving execution under CEO Lip-Bu Tan, potential foundry customers for next-generation manufacturing, and rising earnings estimates for 2027 and 2028.
- Intel leads chip stocks higher as investors jump back into AI trade
Chip stocks rebounded on Monday as investors bought the dip after last week's steep AI trade sell-off. The PHLX Semiconductor Index (^SOX) rose 2%, reversing a recent semiconductor rout. Intel (INTC) jumped 5% after JPMorgan upgraded the stock to Buy, citing "solid execution." Nvidia (NVDA) and AMD (AMD) also gained, while a Goldman Sachs upgrade of CoreWeave (CRWV) to Buy from Neutral helped lift AI sentiment. Arm Holdings (ARM), Micron Technology (MU) and SK Hynix (SKHY) also rebounded after sharp declines last week.
- Netflix stock is down roughly 25% in 2026 as Q3 earnings loom
Netflix (NFLX) reports third-quarter results after the bell on Tuesday, with the stock down more than 25% this year and closing Friday near $70, versus $93.76 at the end of 2025. Investors are worried about slowing viewership, competition from YouTube, and live sports moving to Amazon Prime Video and HBO Max. Last week Netflix cut about 6% of its workforce (roughly 1,000 employees) and named Peter Rice its new chief content officer, and five firms lowered price targets in October. Analysts expect EPS of $0.82 on revenue of $12.88 billion, up about 12% from a year earlier, in line with Netflix's own forecast. KeyBanc's Justin Patterson wants more content investment, product changes, expense cuts and a possible first-ever dividend.
- Cleveland-Cliffs Jumps 10% on Strongest Quarter in Three Years; Nucor and Steel Dynamics Edge Higher
Cleveland-Cliffs (CLF) rose 10% to $13.29 after reporting third-quarter adjusted EBITDA of $612 million, beating its $575 million guidance and up sharply from $143 million a year earlier. Revenue of $5.61 billion missed the $5.72 billion expected, though sales rose 18.6% year over year on a higher average net selling price of $1,177 per ton and larger shipments. Management said imports remain well below historical levels, but it indefinitely idled the galvanizing lines at its Canadian unit Stelco due to oversupply. The company guided to about $715 million of adjusted EBITDA in Q4 and said 2027 adjusted EBITDA should exceed $4 billion based on current index price forecasts. Its target is to bring net debt to EBITDA below 2.5x by mid-2027.
- Tech rebounds as semiconductor stocks jump: AlphaCheck
Stocks were mostly higher on Monday as investors turned their focus to earnings season, with semiconductor stocks rebounding after last week's sharp sell-off. The Tech sector (XLK) rose, led by Nvidia (NVDA), AMD (AMD), Micron (MU) and SK Hynix (SKHY). Intel (INTC) also jumped after JPMorgan analysts upgraded the stock, while CoreWeave (CRWV), hammered last week, rebounded on a Goldman Sachs upgrade. Investors are watching this week's reports from Netflix (NFLX), SpaceX (SPCX), Tesla (TSLA) and Meta (META). The 10-year Treasury (^TNX) yield hovered near 5.1%, while Brent crude (BZ=F) dropped to $108 per barrel and WTI (CL=F) hovered below $98.
- AI capex may be Meta's biggest earnings test
Meta Platforms (META) reports third-quarter earnings after the close on Wednesday, alongside a wave of Big Tech peers. The GAAP EPS estimate is $3.54, though that figure may be messy because a legal settlement will be included and analysts differ on how it will be accounted for. Options imply a 3.2% move in either direction, the smallest since the fourth-quarter report before last. Estimates for next year's capex vary widely: Wedbush near $250 billion, Evercore ISI $210 billion, Bank of America $205 billion and Dan Ives around $194 billion. Most analysts say that spending is acceptable if Meta provides a Muse roadmap and confidence it can monetize it, and the stock is up about seven and a half percent year to date.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.