TDR Capital International - Expected to Deliver 772% Earnings Growth: Top Cathie Wood Stock

KOWLOON BAY, Hong Kong - July 12, 2023 - PRLog -- Shopify's profits growth is anticipated to soar in 2023 as a result of a strategy change, and high increases are anticipated to continue in 2019. And the buy signal is flashing on the SHOP stock.

Sale on Shopify Logistics

On May 4, Shopify announced that it will be selling its fulfillment company to the privately owned Flexport. The transaction would close in June. In recent years, the leader in e-commerce software has attempted to compete with Amazon.com (AMZN) in the third-party fulfillment of online purchases. However, it ended up being a "expensive experiment."

Although Shopify now owns 13% of Flexport, cutting off logistics will allow the business to reduce expenses. In the meanwhile, gross merchandise growth has resumed after abruptly decreasing after the coronavirus pandemic surge.

Shopify's revenue

Shopify's profits fell precipitously, from 64 cents in 2021 to 4 cents in 2022. The pandemic's termination resulted in a significant slowing in e-commerce growth.

Earnings for the first quarter fell 50% from the prior year when they were disclosed on May 4 along with the Flexport purchase. To $1.51 billion, sales increased by 25%.Following first-quarter results and the Flexport transaction, Shopify stock shot out of a cup-and-handle base on May 4 and gapped up 24%. The 21-day line has once again provided support for this Cathie Wood stock. As of June 30, Ark Invest owned 0.68% of the shares of Shopify. With a weight of 3.7% total, it ranks as the 8th-largest position among Cathie Wood's Ark ETFs.

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