Latest news with #merchantSolutions
Yahoo
06-08-2025
- Business
- Yahoo
Global Payments beats profit estimates on core business strength
(Reuters) -Global Payments beat Wall Street estimates for second-quarter profit on Wednesday, helped by strong growth and margin improvement in its merchant and issuer solutions businesses, sending its shares up 5% in premarket trading. U.S. consumer spending has remained unexpectedly resilient in the face of economic headwinds, with card issuers and payments firms reporting steady transaction volumes in the second quarter, driven by affluent households even as signs of strain emerge among lower-income consumers. Global Payments' adjusted net revenue rose 5% on a constant currency basis in the quarter ended June 30. The company now expects full-year adjusted profit to be at the upper end of its previous growth forecast of 10% to 11%. Adjusted revenue from its merchant solutions business rose 5.5% on a constant currency basis in the quarter, with margins expanding by 130 basis points. Revenue from its issuer solutions unit grew 3.5%, and margins improved by 190 basis points. In April, Global Payments agreed to buy rival Worldpay from FIS and private equity firm GTCR for $24.25 billion in a three-way deal, sharpening its focus on merchant services in its race for big-business clients in a crowded payments market. The Atlanta-based company has been undertaking a review of its business in recent months, shedding smaller pieces to streamline its offering and boost returns. Global Payments said it remains on track to close the Worldpay deal in the first half of 2026. "We are more confident than ever the combined business with Worldpay will meaningfully enhance our financial profile, deliver sustainable performance, and unlock value for our shareholders," CEO Cameron Bready said in a statement. Global Payments' profit came in at $3.10 per share on an adjusted basis in the quarter. Analysts on average had expected $3.06, according to data compiled by LSEG. Sign in to access your portfolio
Globe and Mail
24-06-2025
- Business
- Globe and Mail
SHOP Soars 8.4% in a Month: Can Growing Merchant Base Fuel More Gains?
Shopify SHOP shares have gained 8.4% over the past month compared with the broader Zacks Computer & Technology sector's increase of 4.8%. The Zacks Internet - Services industry has declined 0.9% in the same time frame. The outperformance can be attributed to robust growth in its merchant base driven by its merchant-friendly tools, including Shop Pay, Shopify Pay Instalments, Sign in with Shop and the Shop App. The strong adoption of these solutions holds promise for Shopify's prospects. In the first quarter of 2025, Merchant Solutions' revenues were $1.74 billion and accounted for 73.7% of Shopify's total revenues. On a year-over-year basis, merchant revenues increased 29%, driven by strong Gross Merchandise Volume (GMV) and increased penetration of Shopify payments. GMV in the first quarter of 2025 was $74.75 billion, which increased 22.8% year over year. Same-store sales growth from existing merchants, a higher number of merchants on SHOP's platform and strong international growth drove GMV in the reported quarter. SHOP Stock Performance SHOP Benefits From an Expanding Portfolio SHOP's expanding portfolio has been a major growth driver for its success. Its merchant-friendly tool Shop Pay stands out as a key driver. The app processed $22 billion in Gross Merchandise Value in the first quarter of 2025, up 57% year over year. Large brands like Birkenstock, Lilly Pulitzer, and Johnny Was adopted Shop Pay, enhancing Shopify's portfolio. Further expanding its portfolio Shopify recently partnered with Coinbase and Stripe to enable merchants worldwide to accept USDC stablecoin payments through Shopify Payments. This integration offers fast, borderless transactions on the Base network, with no added fees and seamless checkout experiences. Shopify's investment in AI-driven tools, such as Shopify Sidekick, and Shop Inbox, is helping merchants improve customer engagement and streamline operations. By using AI, Shopify enhances its platform's power and user-friendliness. A Rich Partner Base Aids SHOP's Prospects Shopify's rich partner ecosystem has been a major growth driver. An expanding partner base, which includes TikTok, Roblox, PayPal, Snap, Pinterest, Criteo, IBM, Cognizant CTSH, Alphabet's GOOGL cloud computing platform Google Cloud and Adayen, has further expanded its merchant base. SHOP's partnership with Cognizant and Alphabet's Google Cloud aims to help retailers modernize their commerce platforms and deliver personalized, real-time shopping experiences. Combining Shopify's platform, Alphabet's cloud computing platform Google's cloud technology, and Cognizant's expertise, this partnership supports retailers in scaling globally and unlocking new business value through advanced technologies like generative AI. In its commerce integration partnership with Roblox, Shopify has opened new avenues for merchants to reach a younger and more engaged audience. This collaboration with Roblox allows Shopify to strengthen its position in the digital commerce space. SHOP Suffers From Stiff Competition Shopify is facing stiff competition in the e-commerce marketplace against the likes of Alibaba BABA and Amazon. Alibaba's ecosystem approach provides multiple revenue streams and cross-selling opportunities. Customer management revenues at Taobao and Tmall grew 12% year over year in fourth quarter fiscal 2025, reflecting improved monetization and merchant engagement. In 2025, Alibaba announced that Taobao and Tmall Group have strengthened their partnership with lifestyle content platform Xiaohongshu, enabling merchants to embed product links from their Taobao and Tmall stores directly into Xiaohongshu content posts. SHOP's 2025 Earnings Estimates Revisions Are Steady The Zacks Consensus Estimate for SHOP's 2025 earnings is currently pegged at $1.40 per share, which has remained unchanged over the past 30 days, indicates year-over-year growth of 7.69%. The consensus mark for SHOP's 2025 revenues is currently pegged at $10.86 billion, indicating year-over-year growth of 22.27%. SHOP Stock Overvalued SHOP stock is currently overvalued, as the Value Score of F suggests a stretched valuation at this moment. The stock is trading at a premium, with a forward 12-month Price/Sales of 12.05X compared with the Internet - Services industry's 4.98X. Price/Sales (F12M) Image Source: Zacks Investment Research Conclusion: Hold SHOP Stock For Now SHOP is benefiting from strong growth in its merchant base and expanding footprint. Its focus on improving its client base is a key catalyst. Hence, investors who already own the stock may expect the company's growth prospects to be rewarding over the long term. However, stiff competition, challenging macroeconomic uncertainties, persistent inflation and cautious consumer spending are headwinds. Tariff uncertainties, along with stretched valuation remains a concern. Shopify currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable time to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Alphabet Inc. (GOOGL): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report
Globe and Mail
11-06-2025
- Business
- Globe and Mail
Can Shopify's Expanding Merchant Base Sustain Its Growth Momentum?
Shopify SHOP is benefiting from robust growth in its merchant base driven by its merchant-friendly tools, including Shop Pay, Shopify Pay Instalments, Sign in with Shop and the Shop App. The strong adoption of these solutions holds promise for Shopify's prospects. In the first quarter of 2025, Merchant Solutions' revenues were $1.74 billion and accounted for 73.7% of Shopify's total revenues. On a year-over-year basis, merchant revenues increased 29%, driven by strong Gross Merchandise Volume and increased penetration of Shopify payments. Among these offerings, Shop Pay stands out as a key driver of this momentum. The app processed $22 billion in Gross Merchandise Value in the first quarter of 2025, up 57% year over year. Large brands like Birkenstock, Lilly Pulitzer, and Johnny were adopted by Shop Pay, enhancing Shopify's portfolio. Shopify's investment in AI-driven tools, such as Shopify Sidekick, and Shop Inbox, is helping merchants improve customer engagement and streamline operations. By leveraging AI, Shopify enhances its platform's power and user-friendliness. An expanding partner base that includes TikTok, Snap, Pinterest, Criteo, IBM, Cognizant, Amazon, PayPal, Roblox, YouTube, Target, Manhattan Associates, COACH, Oracle and Adyen is expected to expand its merchant base further. SHOP Faces Stiff Competition From AMZN and BABA Shopify is facing stiff competition in the e-commerce marketplace against the likes of Alibaba BABA and Amazon AMZN. Alibaba's ecosystem approach provides multiple revenue streams and cross-selling opportunities. Customer management revenues at Taobao and Tmall grew 12% year over year, reflecting improved monetization and merchant engagement. In 2025, Alibaba announced that Taobao and Tmall Group have strengthened their partnership with lifestyle content platform Xiaohongshu, enabling merchants to embed product links from their Taobao and Tmall stores directly into Xiaohongshu content posts. Amazon's 'Buy with Prime', which combines its payments and fulfillment services and makes them available at checkout on other websites and promises faster delivery for Prime members, intensifies competition for Shopify. In the first quarter of 2025, Amazon set new delivery speed records for Prime members and delivered more items same-day or next-day than in any previous quarter. SHOP's Share Price Performance, Valuation and Estimates Shopify shares have surged 8.3% year to date (YTD), outperforming the broader Zacks Computer & Technology sector's return of 2.4%. The Zacks Internet Services industry declined 3.9% in the same time frame. SHOP Performance SHOP stock is trading at a premium, with a forward 12-month Price/Sales of 12.14X compared with the industry's 5.31X. SHOP has a Value Score of F. SHOP Valuation The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 28 cents per share, which has decreased by a penny over the past 30 days, indicating a 7.69% increase year over year. The consensus mark for 2025 earnings is pegged at $1.40 per share, unchanged over the past 30 days, suggesting 7.69% year-over-year growth. SHOP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Inc. (AMZN): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report
Finextra
29-05-2025
- Business
- Finextra
Global Payments to sell payroll unit for $1.1bn
Global Payments continues to simplify its business, agreeing to offload its payroll unit to fintech Acrisure for $1.1 billion. 0 The divestiture is the latest step Global Payments has taken to position itself as a pure play merchant solutions provider, shedding non-core businesses. In April it agreed a blockbuster deal to buy Worldpay from GTRC and FIS for $22.7 billion while offloading its Issuer Solutions business to FIS for $13.5 billion. Last year, it also sold its medical software business AdvancedMD for $1.13 billion. "I am pleased with the progress we are making with our transformation program as we move aggressively to simplify our business and enhance value for shareholders," says Cameron Bready, CEO, Global Payments. In connection with the payroll transaction, Global Payments has entered into a mutual referral agreement and long-term commercial partnership with Acrisure in which it will continue delivering human capital management and payroll offerings to its merchant customers. Proceeds of the deal - set to close the second half subject to regulatory approval - will be used to return capital to shareholders.
Globe and Mail
20-05-2025
- Business
- Globe and Mail
SHOP Surges 34% in a Month: Should You Buy the Stock Now or Wait?
Shopify SHOP shares have risen 33.6% over the past month compared with the broader Zacks Computer & Technology sector's growth of 22.6%. The Zacks Internet - Services industry has appreciated 13.6% in the same time frame. The outperformance can be attributed to robust growth in its merchant base, driven by its merchant-friendly tools, including Shopify Payments, Shop Pay, Shopify Pay Instalments, Sign in with Shop and the Shop App. These offerings are enabling Shopify to attract merchants, even amid challenging economic conditions. In the first quarter of 2025, Merchant Solutions' revenues were $1.74 billion and accounted for 73.7% of Shopify's total revenues. On a year-over-year basis, merchant revenues increased 29%, driven by strong Gross Merchandise Volume (GMV) and increased penetration of Shopify payments. GMV in the first quarter of 2025 was $74.75 billion, which increased 22.8% year over year. Same-store sales growth from existing merchants, a higher number of merchants on SHOP's platform and strong international growth drove GMV in the reported quarter. One Month Performance SHOP Benefits From an Expanding Portfolio SHOP's expanding portfolio has been a major growth driver for its success. Its merchant-friendly tool Shop Pay stands out as a key driver. The app processed $22 billion in Gross Merchandise Value in the first quarter of 2025, up 57% year over year. Large brands like Birkenstock, Lilly Pulitzer, and Johnny Was adopted Shop Pay, enhancing Shopify's portfolio. Shopify's expanding footprint in the B2B space has also been noteworthy. In the first quarter of 2025, it saw 109% growth in B2B Gross Merchandise Value, marking an impressive performance in a growing market for the platform. Building on this momentum in April 2025, Shopify announced a suite of new partner solutions tailored for B2B businesses. These solutions offer advanced storefront solutions, seamless back-office integrations, and native apps designed to speed up digital commerce for manufacturers and distributors. These solutions aim to streamline operations and enhance the B2B buying experience with faster time-to-market and lower costs. Shopify's investment in AI-driven tools, such as Shopify Sidekick, and Shop Inbox, is helping merchants improve customer engagement and streamline operations. By using AI, Shopify enhances its platform's power and user-friendliness. A Rich Partner Base Aids SHOP's Prospects Shopify's rich partner ecosystem has been a major growth driver. An expanding partner base, which includes TikTok, Roblox RBLX, PayPal, Snap, Pinterest, Criteo, IBM, Cognizant CTSH, Alphabet 's GOOGL cloud computing platform Google Cloud and Adayen, has further expanded its merchant base. SHOP's partnership with Cognizant and Alphabet's Google Cloud aims to help retailers modernize their commerce platforms and deliver personalized, real-time shopping experiences. Combining Shopify's platform, Alphabet's cloud computing platform, Google's cloud technology, and Cognizant's expertise, this partnership supports retailers in scaling globally and unlocking new business value through advanced technologies like generative AI. In its commerce integration partnership with Roblox, Shopify has opened new avenues for merchants to reach a younger and more engaged audience. This collaboration with Roblox allows Shopify to strengthen its position in the digital commerce space. SHOP's 2025 Earnings Estimates Revisions Are Steady The Zacks Consensus Estimate for SHOP's 2025 earnings is currently pegged at $1.40 per share, which has decreased 4% over the past 30 days, indicating year-over-year growth of 7.69%. The consensus mark for SHOP's 2025 revenues is currently pegged at $10.85 billion, indicating year-over-year growth of 22.24%. SHOP Stock Overvalued SHOP stock is currently overvalued, as the Value Score of F suggests a stretched valuation at this moment. The stock is trading at a premium, with a forward 12-month Price/Sales of 12.14X compared with the Internet - Services industry's 4.98X. Price/Sales (F12M) Image Source: Zacks Investment Research Conclusion: Hold SHOP Stock for Now SHOP is benefiting from strong growth in its merchant base and expanding footprint. Its focus on improving its client base is a key catalyst. Hence, investors who already own the stock may expect the company's growth prospects to be rewarding over the long term. However, stiff competition in the e-commerce marketplace against the likes of Alibaba and Amazon, challenging macroeconomic uncertainties, persistent inflation and cautious consumer spending are headwinds. Ongoing tariff uncertainties, along with a stretched valuation, is a concern. Shopify currently carries a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable time to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Cognizant Technology Solutions Corporation (CTSH): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report Roblox Corporation (RBLX): Free Stock Analysis Report
