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Summary
- Stocks of Shopify Inc (TSX:SHOP) jumped as much as 10 per cent on Wednesday (11.14AM EST).
- Its stock was also up over 5.3 per cent in premarket trading on the New York Stock Exchange (NYSE).
- Its top line soared 110 per cent to US$ 988.6 million on a year-over-year basis against US$ 470 million in Q1 2020.
Stocks of Shopify Inc (TSX:SHOP) jumped as much as 10 per cent on Wednesday, April 28, (11.14AM EST) as the company reported higher than estimated earnings and doubled e-commerce sales in Q1 2021.
Its stock was also up over 5.3 per cent in premarket trading on the New York Stock Exchange (NYSE).
Its top line soared 110 per cent to US$ 988.6 million on a year-over-year basis against US$ 470 million in Q1 2020. Earlier, Bay Street analysts had anticipated net sales of US$ 863 million for Shopify in the latest quarter.
The Ottawa-headquartered company had itself expected the 2021 first quarter to add the smallest portion to its full-year sales results. But renewed lockdown orders and slow inoculation against COVID-19 extended e-commerce demand across the country.
Shopify’s earnings per share also surpassed the analysts’ estimates by 35 per cent to US$ 2.01.
As merchants continued to shift their conventional businesses to e-commerce platforms in the first quarter of 2021, Shopify’s Subscription Solutions revenue surged 71 per cent to US$ 320.7 million YoY.
The Canadian tech company maintained its status quo on the projected sales growth in 2021 and expected steady earnings in the upcoming quarters.
Source: Pixabay
Let have a glance at the tech stock’s price performance.
Shopify Inc (TSX:SHOP)
The cloud-based e-commerce platform provider rocketed to an all-time high of C$ 1,900.58 per common share on February 10 this year, led by unprecedented online shopping demand. However, it has since retreated by about 22 per cent from the record peak.
The tech stock could rebound to its all-time high this year on the back of its robust financial results. At the time of writing this, its share price was C$ 1,580.33 apiece. The stock is up five per cent year-to-date (YTD).
In the past one year, Shopify stock yielded more than 70 per cent. Its market cap is over C$ 178 billion, while its earnings per share (EPS) is C$ 3.35 and its the return on equity is 6.6 per cent.
Shopify's One-Year Stock Performance Chart. (Source: Refinitiv)
Shopify is leading Canadian small and medium businesses to live their digital dream via its e-commerce platforms.
For 2021, the company expects stock-based compensation costs and related taxes of US$ 425 million and anticipates amortization worth US$ 21 million for purchased intangibles.
