Latest news with #Shopify-powered
Yahoo
16-05-2025
- Business
- Yahoo
Shopify: As Trade Tensions Ease, Is the Stock a Buy?
Shopify shares rallied after the U.S. and China paused most of their tit-for-tat tariffs. The e-commerce company continues to see solid top-line growth as it expands Shop Pay and adds new customers. The stock is not cheap. 10 stocks we like better than Shopify › Though its stock price dipped following the release of its first-quarter results on May 8, Shopify (NASDAQ: SHOP) shares have rallied sharply since news has come out that points to an easing of the intense trade tensions between the U.S. and China (at least for the short term). The stock is now up modestly on the year and has risen more than 80% over the past year, as of this writing. While the e-commerce company is not directly impacted by President Donald Trump's tariffs, its core customers -- most of them small and medium-sized merchants -- are. If higher costs across the board for American consumers lead them to tighten their belts, or if tariffs cause some smaller retail merchants to close up shop, that would certainly impact Shopify's business. As such, it should have come as little surprise that the company issued somewhat cautious guidance when it reported its Q1 earnings results. By contrast, the positive news on the trade front that has come out more recently bodes better for Shopify. With all that in mind, is this a good time to buy the stock? In the first quarter, Shopify's revenue jumped by 27% year over year to $2.36 billion. Its high-margin subscription revenue rose 21% to $620 million, while its merchant solution revenue soared by 29% to $1.74 billion. Gross profit dollars rose 22% to $1.17 billion. Given the gross margin difference between its subscriptions and merchant solutions, this metric is more reflective of the company's growth. Adjusted earnings per share (EPS), meanwhile, climbed 29% to $0.44, coming in just ahead of the $0.43 consensus. Its gross merchandise volume (GMV), which is the total dollar value of the sales transacted through its platform, rose by 23% to $74.8 billion. It was the seventh straight quarter of GMV growth of 20% or more. Metric Q1 2025 Growth (YOY) Gross merchandise volume (GMV) $74.8 billion 23% Revenue $2.36 billion 27% Subscription revenue $666 million 21% Merchant Solutions revenue $1.74 billion 29% Gross Profit $1.17 billion 22% Adjusted EPS $0.44 29% Data Source: Shopify. YOY = Year over year. Business-to-business GMV was once again strong, soaring by 109% year over year. International GMV growth was 31%, with cross-border growth of 15%. Offline GMV, meanwhile, rose 23%. Shop Pay, the company's online checkout and payment processing solution, continued to be a growth driver, with GMV up 57%. It expanded the solution to 16 new countries in the quarter, bringing the total to 39 countries. Meanwhile, Shop App, which aggregates products and brands from Shopify-powered stores, saw its GMV soar 94%. Shopify also continues to do well in its efforts to move upmarket and bring enterprise-level customers to its platform. During the quarter, it added Purple, Lilly Pulitzer, and Birkenstock to its customer list, and this week it expanded with a few new Tapestry brands, adding online shops for Coach, Kate Spade, and Kate Spade Outlet. Looking ahead, management forecasts that its second-quarter revenue would rise at a mid-20s percentage rate, with gross profits growing at a high-teens percentage rate. The revenue guidance was above the analysts' consensus estimate of 22% growth, but the gross profit outlook was below the 20% growth that analysts had, on average, projected. As noted above, I think gross profit is the more important number to watch with this company. Management said it can quickly respond to tariffs through new features, such as a duty-inclusive tool that allows merchants to set international prices that include duties in the product price. It has also introduced an artificial intelligence (AI) tariff solution that can provide duty rates based on just a product description and its country of origin. Shopify continues to put up strong growth. It's adding new customers, which is reflected in its subscription revenue growth. It's also doing a great job of increasing Shop Pay adoption, which allows it to grow with customers. Expanding Shop Pay into more countries will only help power the business's growth. It's also helping its customers drive growth through things like the Shop App. The company has also done a nice job of moving beyond small online merchants. It's seeing strong growth in business-to-business, offline, and with large enterprise customers. I would recommend gauging the stock based on the company's gross profit multiple. Based on management's guidance for gross profit growth in the low 20s percentages, we can expect approximately $5.45 billion in gross profits this year. If that proves accurate, Shopify is trading now at about 25.5 times 2025 gross profits. I think that's a bit high given its growth rate. For context, Toast, which employs a somewhat similar model in the restaurant space and is growing at a faster pace, trades at a gross profit multiple of 14. As such, I would not chase Shopify's stock after its recent rally. Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Shopify wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $613,951!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $796,353!* Now, it's worth noting Stock Advisor's total average return is 948% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Geoffrey Seiler has positions in Toast. The Motley Fool has positions in and recommends Shopify and Toast. The Motley Fool recommends Tapestry. The Motley Fool has a disclosure policy. Shopify: As Trade Tensions Ease, Is the Stock a Buy? was originally published by The Motley Fool
Business Mayor
11-05-2025
- Business
- Business Mayor
Sleepwear brand Ammarzo plans to raise $500K for category expansion & offline retail
Representative Image New Delhi: Direct-to-consumer sleepwear brand Ammarzo is ambitiously targeting a 5X revenue jump to Rs 40 crore by FY28, backed by new category launches, global market entry, and offline expansion, said Chahatt Khanna, founder of the company. The brand, currently bootstrapped and debt-free, plans to raise USD 500,000 this year to accelerate its growth. 'We're scaling across three verticals — launching in premium offline stores by early 2026, entering international markets like the UAE, UK, and Southeast Asia this year, and expanding into high-margin accessories such as sleep masks, pillow mists, and bedding,' said Khanna. Founded in 2020 with a focus on premium sleepwear designed around comfort and well-being, Ammarzo has grown via a digital-first strategy combining performance marketing, founder-led content, and Shopify-powered personalization. The brand aims to close FY26 with Rs 5 crore in net revenue and positive cash flow, followed by a projected Rs 14 crore in FY27, driven by increased repeat purchases and category upsell. However, the brand did not disclose its previous fiscal year's revenue. Khanna said the company is also exploring partnerships with wellness brands and investments in backend infrastructure to support scale, including warehousing and supply chain upgrades. 'We're building more than a fashion label — the goal is to create a sleep-focused ecosystem with purpose-led profitability,' she said. Ammarzo operates in India's Rs 6,000 crore nightwear market, with the luxury segment valued at Rs 500–600 crore, projected to grow at 12% CAGR to reach Rs 880 crore by 2030. With rising demand for premium, skin-friendly fabrics and wellness-aligned consumption, the brand sees an opportunity to build a long-term, differentiated play in a traditionally underserved niche.
Yahoo
05-04-2025
- Business
- Yahoo
Should You Forget Amazon? Why These Unstoppable Stocks Are Better Buys
There's no denying it: Amazon (NASDAQ: AMZN) has not only been one of this century's most rewarding stock picks, but also one of the market's biggest-ever winners. Shares are up by more than 250,000% since their 1997 public offering, and that's counting the sizable pullback from January's peak. There's also no denying, however, that Amazon's highest growth days are in the rearview mirror if only because comparisons to its past are now such a high bar. While it's still a solid holding, investors looking for above-average growth from here will want to look elsewhere. Here's a rundown of three growth stocks to consider buying instead of Amazon. Amazon isn't just the powerhouse of the Western Hemisphere's e-commerce industry. It largely built the business, leaving its fingerprints as a result. It's certainly the name that newcomers to the market are most worried about beating, or being beaten by. As could have been expected though, the e-commerce industry is also evolving. Brands and sellers now have access to different ways of selling online, just as consumers are willing and able to buy from platforms other than massive online shopping malls like Amazon's. Enter Shopify (NASDAQ: SHOP), which is one reason manufacturers and brands can increasingly operate outside of Amazon's shopping ecosystem. In simplest terms, Shopify makes it possible for companies to establish their own online store and sell directly to customers to do so. Its turnkey solutions range from digital shopping carts to payment processing to inventory management to marketing, and more. Some of its client companies include FragranceNet, Skullcandy, Carrier, and Daily Harvest. Although the company itself no longer discloses the number, estimates put the worldwide number of Shopify-powered online stores somewhere in the ballpark of 5 million. The company does still report the amount of business its platform collectively drives though. Its technology facilitated the sale of $292.3 billion worth of goods and services in 2024, resulting in nearly $8.9 billion in revenue and operating income of $1.1 billion of its own. Both are well up from the prior year's comparisons, too, extending a long-standing growth streak that just a few years back many would have thought impossible to produce. What gives? As it turns out, although consumers certainly don't mind purchasing from Amazon, people increasingly crave authenticity while also supporting responsible businesses with compelling stories to tell. Indeed, as a recent poll performed by Upworthy and Alter Agents suggests, 76% of North American consumers specifically seek out "feel good" content from brands they may end up buying from. While isn't cut out to deliver any of this, Shopify's toolkit makes it possible for manufacturers and sellers to do so. This movement is only going to expand. Analysts expect top-line growth of more than 20% every year at least through 2027. Shopping isn't the only industry that's been changed by the advent of the internet, of course. The internet significantly changed the banking business as well. A recent survey taken by the American Bankers Association indicates that 55% of U.S. consumers now use a mobile app as their primary means of conducting banking business. A conventional computer is the second-most preferred method, being the go-to option for 22% of banks' customers. At the other end of the spectrum, only 11% of this nation's banking customers are interested in visiting a branch, while an even smaller 4% of this crowd wants to conduct banking business with a phone call. Problem? Most of the online banking platforms that were launched by a brick-and-mortar establishment aren't quite resonating with increasingly tech-savvy consumers. The new preferred norm is a service that's been built from the ground up to be an online bank, such as SoFi Technologies (NASDAQ: SOFI). It's got all the options you'd expect from a conventional bank, like checking accounts, credit cards, investing services, lending, and more, even including insurance. The one thing SoFi doesn't have, however, is conventional bank branches. See, SoFi is only an online bank. The thing is, fewer and fewer people seem to care. The bank now boasts a little more than 10.1 million customers, extending a growth streak that's been uninterrupted since 2020. Each of these customers is also utilizing a growing number of banking services or products. This is still just the beginning though. The global online banking market could annually grow by 14% till 2030, according to the market research company, Straits Research. Although Europe is likely to lead this growth, it's the North American market's already significant size (which SoFi already caters to) that'll drive that growth across the pond. Finally, add ride-hailing outfit Uber Technologies (NYSE: UBER) to your list of stocks other than Amazon to buy while you can still step into it at an attractive price. The stock's currently trading where it was about a year ago despite continued growth since then, leaving it roughly 25% below analysts' consensus price target of just over $90 per share. It's yet another name that's thriving because of technological change. Namely, thanks to the advent of the internet -- and mobile internet connectivity in particular -- consumers can conveniently call for a ride, while highly mobile drivers can just as easily connect with a paying rider. It just wasn't a viable option 25 years ago, when hailing a cab, calling a cab company, or taking the bus was the only real third-party mobility option. There's something else driving last year's 19% increase in Uber's total trips and revenue though... or perhaps the other way around. Whatever the case, due to a combination of rising costs and waning convenience, paired with new options, interest in car ownership is on the decline. A poll recently performed by Deloitte indicates that while only 11% of the 55-and-up crowd in the United States would consider giving up their own vehicle to use ride-hailing alternatives like Uber, 44% of the under-35 cohort would be willing to do so. In a similar vein, a growing number of people aren't in any hurry to secure a driver's license. The Federal Highway Administration reports that the number of 19-year-olds with a license slipped from more than 87% in 1983 to less than 69% as of 2022, underscoring a bigger and growing trend for people all around that age. Again, this crowd sees little need to drive themselves using their own car when more convenient and cost-effective options are now offered. Uber shares have been hot and cold of late, mostly due to the occasional disappointing quarterly metric or guidance. Don't be too quick to jump to conclusions though. Uber's growth has consistently been in the mid-teens -- if not better -- and will likely remain there for at least the next several years as ride-hailing continues to displace conventional car ownership. Incidentally, most analysts see Uber stock as a strong buy, despite current investor sentiment. Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Shopify wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $461,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $578,035!* Now, it's worth noting Stock Advisor's total average return is 730% — a market-crushing outperformance compared to 147% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 4, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Shopify, and Uber Technologies. The Motley Fool has a disclosure policy. Should You Forget Amazon? Why These Unstoppable Stocks Are Better Buys was originally published by The Motley Fool Sign in to access your portfolio
