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- 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 Stock Plunges. Slowing Merchandise Sales Flash a Warning Sign.
- Shopify vs. Target: Which Technology Stock Is a Better Buy in 2026?
The article compares Shopify (SHOP) and Target (TGT) as two different ways to invest in modern commerce. Shopify serves millions of merchants in over 175 countries and reported FY 2025 revenue of nearly $11.6 billion (up roughly 30.1%), net income of about $1.2 billion and free cash flow near $2.0 billion, while stock-based compensation was roughly 22.1% of operating cash flow. Target, with nearly 2,000 stores, reported FY 2025 revenue of nearly $104.8 billion (down roughly 1.7%), net income of about $3.7 billion and free cash flow near $2.8 billion. The article details legal and competitive risks for both companies, and Target's forward P/E of 15 compares with 91.5 for Shopify. The author says they would choose Target if buying today, citing new CEO Michael Fiddelke's $5 billion plan to upgrade stores, product mix and supply chain, and a return to sales growth in fiscal 2026.
- Why Shopify Stock Popped by Nearly 5% Today
Shopify shares rose almost 5% on Monday after Cantor Fitzgerald raised its price target to $158 from $145 but kept a neutral rating. The firm expects convincing beats on gross merchandise volume (GMV) and revenue ahead of third-quarter earnings on Tuesday, with revenue growth in the low 30% range. Cantor, however, cautioned that AI inference costs could be considerable and squeeze margins, and that Shopify's tilt toward less profitable merchant solutions is a concern. The article adds that profitability has been choppy and valuations high, leaving the stock looking pricey after its recent surge.
- 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.
- Shopify Sinks 14% in a Week as Q3 Falls “Shy of Lofty Expectations”
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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The biggest losers so far are AI data center stocks. This follows victories by several candidates who campaigned expressly against the sector.
- SpaceX, Tesla stocks sink as analyst warns Democrats' victory will create 'major hurdles' for AI build-out
SpaceX (SPCX) fell 7% and Tesla (TSLA) fell 5% on Wednesday, along with AI-linked stocks CoreWeave (CRWV), IREN (IREN) and Vertiv (VRT), after Democrats won majorities in the House and Senate. Yorkville analyst Dan Ives said this will slow the pace of 800 to 1,000 planned AI data centers across the US over the next 2 years. He pointed to Texas as the biggest risk, where around 25%-30% of data center gigawatts and capacity will come from, after Democrat Gina Hinojosa defeated Governor Greg Abbott. Ives said SpaceX and Musk are caught at the center of this political risk, and Big Tech will need to adapt to the new political landscape.
- Meet the Only "Magnificent Seven" Stock That's Outperforming the S&P 500 and Nasdaq This Year (Hint: It's Not Nvidia)
Apple (AAPL) is the only 'Magnificent Seven' stock still outperforming the S&P 500 and Nasdaq this year after last week's sell-off, up 26.8% year-to-date, and it overtook Nvidia as the world's most valuable company on Oct. 30. The article argues Apple's thesis does not depend on heavy AI capex, as it generated $31.9 billion in trailing 12-month free cash flow, while Amazon, Alphabet and Meta Platforms have turned free cash flow negative as their AI spending grows. AI is seen as an add-on to Apple's ecosystem and products rather than the main driver. Apple trades at 39.5 times earnings and 36.1 times forward earnings, well above its 10-year median P/E of 27.6, though the author judges the premium digestible for investors who see Apple as a recession-resistant hybrid, since Walmart (42.8x) and Costco (44.4x) carry even higher forward P/Es.
- SpaceX Declines 6%, Tesla Falls 5% as Democratic Sweep Raises Merger and Regulatory Risks; General Motors Rises 2%
SpaceX (SPCX) fell 6% to $133.03 and Tesla (TSLA) fell 5% to $378.20 in morning trading after Democrats were projected to win control of both the House and Senate. The article links the pressure to Elon Musk's political exposure, noting he poured nearly $450 million into Republican coffers before the vote, while General Motors and Ford each rose 2%. Democrats could slow a potential Tesla and SpaceX merger, with prediction-market pricing giving a 57.5% probability of an official announcement by June 30, 2027. Barclays estimates Musk would control 56% of the voting rights in a combined entity, although his share of outstanding shares is 37%. More than 1 billion SpaceX shares became eligible for sale after IPO restrictions expired in late October, and the company carries a $1.9 trillion valuation according to Bloomberg.
- Marvell Slipped Over The Last Month and Then Crashed Massively on the Lumentum Announcement: This Wall Street Desk Doubled Down on Its 130% Gains Prediction
Marvell (MRVL) fell nearly 37% over the past month and 29.4% over the past week after announcing an all-stock deal to buy Lumentum (LITE), a steeper drop than AI chip peers, whose monthly declines ranged from 6.48% to 23.66%. Investors disliked paying in stock because it dilutes existing holders, and Marvell carries $4.963 billion in long-term debt while still integrating Celestial AI and XConn Technologies. Several of the 47 analysts covering the stock have cut targets since the deal, with the average target at $333.09 against a price of $171.97. Piper Sandler kept its Overweight rating and $400 target, calling the selloff an overreaction and citing second-quarter fiscal 2027 revenue of $2.739 billion, up 36.5%. The article notes most targets were set before the deal, so the average could drift lower.
- Amazon's Good Problems to Have Keep Me Hitting The Buy Button
Amazon's AWS revenue reached $45.98B, up 39% year over year, its fastest growth in nearly 5 years, while AWS operating income rose from $11.43B to $17.77B and backlog stands at $578 billion. Customers are absorbing AI capacity almost as fast as Amazon installs it, and capex is climbing toward $220 billion in 2026 after $77.26B in Q3 alone. Retail profitability also improved, with North America operating income at $8.72B and a company-wide operating margin of 13.9%, a record. The author, who has added to the position, cites risks including heavy spending, memory chip supply, tariffs, and a trailing free cash outflow of $42.4B. Q3 GAAP EPS of $1.89 missed the $1.96 estimate, and the stock fell 1.3% over the past year.
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