Shopify falls 7% after Q3 revenue and merchandise volume miss estimates

Our Take

Shopify's Q3 shows how little room there is for a miss at this valuation. Revenue grew 32% to $3.74 billion and adjusted EPS of $0.49 beat by two cents, but gross merchandise volume of $119.1 billion came in just under the roughly $120 billion estimate, and growth slowed to 29% from 31% last quarter. That was enough to send SHOP down about 13% at the open, near $136. What happened next matters more for traders: buyers stepped in at the lows and the stock recovered to around $147 by midday, cutting the loss to roughly 5%. A reversal like that off an earnings gap down often signals that bigger players see the reaction as overdone. Key levels now: the $135–$136 opening low as support, and the $156 prior close as the gap to fill. Holding above $147 into the close would keep the recovery intact; losing it reopens the lows.

Opinion of Tech & Money Press. Not financial advice.