Shopify Inc. (SHOP) reported its third-quarter results on November 2. The company comfortably surpassed the consensus EPS and revenue estimates driven by growth in its merchant business. In this piece, I have discussed why it could be prudent to avoid the stock now.
During the third quarter, SHOP’s EPS was 65.8% above the consensus estimate, while its revenue was 2.6% higher than analyst estimates. The company continued its stellar earnings history, beating the consensus EPS estimate in each of the trailing four quarters. SHOP’s President Harley Finkelstein said, “Our third-quarter results demonstrate the progress we are making to further solidify Shopify’s position as the global leader in commerce.”
