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.
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