Shopify (NYSE:SHOP) stock is rocketing higher on Wednesday thanks to some positive news from the company.
Here’s what investors in SHOP stock need to know about why shares are increasing today!
- Shopify stock is heading higher after the company released its earnings report for the first quarter of 2021.
- This saw it bring in adjusted earnings per share of $2.01 on revenue of $988.6 million.
- That’s great news for SHOP stock as Wall Street was looking for adjusted EPS of 73 cents on revenue of $865.48 million for the quarter.
- Its adjusted per-share earnings are also a massive jump from the 19 cents reported during the same period of the year prior.
- The same is true for revenue, which is up 110% year over year from $470 million.
- Adding to that is a net income of $1.26 billion, which is a major change compared to a net loss of $31.4 million in the first quarter of 2020.
Shopify had this to say in its most recent earnings report concerning its 2021 outlook.
“2020 catapulted commerce into a period of incredibly rapid change, presenting Shopify with unprecedented opportunities in 2021 to accelerate innovation. We continue to expect rapid growth in gross profit dollars in 2021 and plan to reinvest back into our business as aggressively as we can, with the year-over-year growth in operating expenses accelerating each quarter throughout the rest of the year. As such, we expect full year 2021 adjusted operating income to be below the level we achieved in 2020.”
SHOP is seeing heavy trading today on the strong earnings news. As of this writing, more than 2.7 million shares of the stock have changed hands. That’s a massive increase over its daily average trading volume of 1.4 million shares.
SHOP stock is also up 10.6% Wednesday afternoon and is up 17.1% since the start of the year.
Shopify isn’t the only company experiencing major movement today.
Several others companies are already seeing shares moving, or are likely to as the day continues. That includes Protalix BioTherapeutics (NYSEMKT:PLX), Novavax (NASDAQ:NVAX), and Aveanna Healthcare (NASDAQ:AVAH). investors can learn more about these stocks below.
More Wednesday Stocks News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.