Key points The jump was fueled by robust Q3 earnings, which saw adjusted earnings double. Is Shopify stock a buy? The e-commerce platform has had six straight quarters of 25% year-over-year revenue growth. Shopify stock was the biggest movers on Tuesday, skyrocketing more than 25% on the day to about $113 per share. The e-commerce platform generated $2.16 billion in revenue in the quarter, up 26% year-over-year and ahead of analysts’ estimates of $2.11 billion.
In addition, Shopify was able to keep expenses in check, as they rose just 7% compared to the third quarter of 2023, with general and administrative expenses actually falling 17% to $114 million. This enabled Shopify to boost its free cash flow by 52% to $421 million, as it gained in each of the first three quarters this year. The free cash flow margin rose to 19%, from 16% in the same quarter a year ago. This is an important measure as it allows to invest in both operations and future growth.