Shopify stock jumps after beating on revenue estimates

Yahoo Finance Live takes a look at Shopify shares following a third-quarter earnings beat.

Video Transcript

SEANA SMITH: Shopify, the stock is soaring after beating on revenue, reporting a narrower loss. You can see the jump of just around 18%. That is the biggest intraday gain that we have seen in about five months. Despite a slowing economy, stronger dollar, sales during the quarter jumping 22% from just a year ago. Now the e-commerce company has made some big changes amid that tougher macroeconomic environment, including cutting 10% of its workforce, rolling out a new compensation framework, and also integrating shipping logistics company Deliver into the platform.

So, Josh, when you take a look at the share jump today, yes, good news here. But that year to date chart, you can see still severe losses. The company has a ways to go in order to gain back, I think, Wall Street's trust.

JOSH SCHAFER: Oh, absolutely, Seana. I mean, it was a stock that people loved during the pandemic, right, because of their e-commerce success. But now we're seeing them kind of come out of e-commerce a little bit. So one analyst today on the Street pointing out you can see what they're doing from a retail side now. And I think that's going to be interesting to watch for Shopify as a payment platform, kind of more akin to what PayPal does and something that you use online, but then you're also using when you go to the store. I think that's going to be an interesting story to watch.