Shopify shares fell 14% over the past week, mostly after its Nov. 3 third-quarter report, in which gross merchandise volume (GMV) and subscription revenue both fell short of estimates. Revenue rose 32% to $3.74 billion, operating income climbed 66% to $568 million, and adjusted EPS of $0.49 beat the $0.46 LSEG estimate, though GMV of $119.1 billion was just under $1 billion short. Gross profit grew 28% to $1.78 billion, pushing gross margin down to 47.6% from 48.9%, while operating expenses fell to 32% of revenue from 37%. Fourth-quarter guidance points to low-thirties revenue growth against high-twenties gross profit growth, so the article says earnings growth leans on cost control. It adds that the drop may offer a lower price for patient investors, but GMV must recover in the fourth-quarter report expected in February.
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- Shopify Stock Fell After Its Report. Here's the Price I'd Pay for It.
Shopify shares fell nearly 9% after its third-quarter report, even though revenue rose 32% to about $3.7 billion and free cash flow jumped 61% to $816 million. The author points to slowing gross profit growth, which eased to 28%, and higher marketing spending planned for the fourth quarter as signs that profit growth may ease, though the author does not think these alone explain the drop. Part of the cash flow gain is temporary, and at about 70 times trailing free cash flow the valuation remains high. The stock has moved closer to the price the author would accept, but not yet there; the author would start considering shares around $115, about 55 times trailing free cash flow. Shares recently traded near $144, about 20% below the October 12 record close of $179.22.
- Why Shopify Stock Dove Today
Shopify shares fell as much as 13.2% on Tuesday and were still down 5.4% at 12:41 p.m. ET, despite third-quarter results that beat analyst estimates. Revenue rose 32% year over year to $3.74 billion and adjusted EPS rose 44% to $0.49, above consensus of $3.73 billion and $0.46. However, gross merchandise volume of $119.2 billion fell short of the $120.1 billion analysts expected, and subscription revenue of $836 million was below the $850 million some had projected. For the fourth quarter, Shopify guided for revenue growth, gross profit, and a free cash flow margin similar to last year's rate of about 19%. At 99 times earnings, the stock trades at a significant discount to its three-year average multiple of 169.
- Shopify Stock Just Plunged. Here's Why I'm Not Selling
Shopify shares fell about 10% on Tuesday morning after its third-quarter report, leaving the stock roughly 22% below its October record. Results were strong: revenue rose 32% year over year to $3.74 billion, operating income jumped 66% to $568 million, and adjusted EPS of $0.49 beat estimates. Two metrics came in slightly short: gross merchandise volume rose 29% to $119.1 billion, below analyst expectations and slower than 32% in Q2, and subscription revenue of about $836 million fell short of roughly $850 million, at a valuation of about 64 times 2027 earnings estimates. Management expects fourth-quarter revenue growth in the low thirties percent and operating expenses falling to 29–30% of revenue. The author says he is holding his shares and will watch GMV and subscription revenue growth in the coming quarters.
- Shopify’s Post-Earnings Drop Is Rippling Through Popular ETFs
Shopify (SHOP) shares are down 9.51% in today's regular session, trading at $141.37 as of 10:31 AM ET, after third-quarter results narrowly missed on revenue. Revenue came in at $3.742 billion versus a $3.744 billion consensus, though it rose 31.58% year over year, while adjusted EPS of $0.49 beat the $0.4598 estimate. Gross merchandise volume (GMV) rose 29%, slower than 32% in the second quarter, which the article says is Wall Street's main worry. Invesco QQQ held 25,888,276 Shopify shares worth $2.96 billion as of its June 30, 2026 filing, and the article estimates the drop takes about 0.057 percentage points off QQQ's return.
- Shopify falls 9% after Q3 revenue and merchandise volume miss estimates
Shopify shares fell 9% in early trading on Tuesday after the e-commerce platform missed estimates for subscription gross profit and gross merchandise volume (GMV). Adjusted earnings of 49 cents per share beat LSEG's 46 cents, but quarterly revenue of $3.74 billion came in just below the $3.75 billion estimate. GMV of $119.15 billion trailed StreetAccount's $120.03 billion, and subscription gross profit of $661 million fell short of $680.3 million, while subscription revenue of $836 million missed $848.1 million per FactSet. Merchant gross profit and merchant revenue beat estimates. Shopify expects fourth-quarter revenue growth in the “low thirties” percent range, versus LSEG's 32.1%.
- Shopify Operating Income Jumps 66%: Rapid Earnings Reaction
Shopify's third-quarter revenue rose 32% to $3.74 billion, while operating income jumped about 66% to $568 million. Growth leaned on payments rather than subscriptions, which thinned gross margin, but tighter spending more than offset the squeeze. Gross profit grew 28%, slower than revenue, while operating expenses rose about 16%. Monthly recurring revenue reached $230 million from $193 million, and merchant solutions made up 78% of revenue. Management expects fourth-quarter revenue to grow at a low-thirties percent rate and gross profit at a high-twenties percent rate.
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