Shopify Stock is on the decline today. With no sign of slowing down, it's a worrisome time for investors. If you're considering buying stock in Shopify, you might have some questions. Wondering what factors affect Shopify stocks? What are the latest news stories about Shopify? Here are five factors that affect Shopify stock today.

Shopify Customers

Shopify is one of the largest e-commerce platforms available in the market, with more than 500,000 merchants using it to run their businesses. This customer base is attractive for investors. It means Shopify will continue to grow in size and revenue, with each customer bringing in more revenue through commissions or transactions on the site. Customers are vital to the success of any business, and Shopify has plenty of them with no sign of slowing down.

Shopify Competitors

Shopify has a lot of competitors. The main ones are Amazon, Bigcommerce, Wix, Squarespace, and Weebly. With all of these companies fighting for the same space, Shopify stock is bound to be affected. As more people start using Shopify for e-commerce sites, the less likely they will create their site. Investors are likely worried about how this will affect Shopify stocks in the future.

Shopify Partnerships

Shopify has had a lot of success with partnerships in the past. It partnered with Apple, Facebook, and Amazon on new products. Shopify also partnered with IBM to create enterprise-level services for its clients. Shopify has partnered with two of the most notable companies globally, Walmart and Amazon. Shopify's partnership with Amazon allows any company to create an online store using the same technology that powers Amazon.com. This is a major step for Shopify as it will allow them to access new customers who are not currently using their platform.

Services

Shopify provides several services that can affect Shopify stocks today. The company's services include hosting, domain name service, and e-commerce solutions. Shopify can provide an all-in-one solution to entrepreneurs looking to start their shop online with these services. These services are in high demand today because of the rise in e-commerce. Analysts believe that Shopify's growth is due to its ability to provide solutions for many different businesses. This gives it a competitive edge over companies like Amazon and eBay only provide one service or product.

New Features

Shopify has been busy improving its platform with new features. The latest update is Shopify POS, a new credit card reader that will make it easier to conduct business in person. They've also announced a new checkout process called "Checkout with Facebook," allowing customers to sign up using their Facebook account. This is an exciting time for Shopify stockholders, as these updates are likely to increase the value of stocks.

If you hold Shopify stock as I write this article, you have many reasons to be happy. This is because revenues and earnings for the second quarter of 2021 beat the expectations of most shareholders. What does this mean in terms of dollars and cents? Well, the right call is to let the numbers speak and stats speak for themselves.

A Summary of Shopify Revenue and Earnings

For the quarter ended June 30 2021, earnings per share on an adjusted basis stands at $2.24. In percentage terms, this is an improvement of 113% over the last year's figure. In addition, revenues increased by 57% to stand at $1.12 billion. Clearly, these are impressive numbers when you compare them to last year's numbers. Most analysts expected earnings of about 97 cents per share but the got more than double what they expected. To put things in perspective, let us look at last year's results. Last year, earnings per share was $1.05 while revenues were $714 million. If things continue to go well for Shopify in the next two quarters, the company will keep making progress.

Grounds for Optimism

Shopify investors are clearly optimistic and there are grounds for this optimism. First off, Shopify earned higher than anticipated revenue and incurred lower than expected operating expenses. It follows that the company's income for the 2021 financial year will be higher than it was in 2020.

A Better Business Environment

The fact that the world is winning the war against Covid-19 is another reason to expect better days ahead for Shopify. This is because a better business environment (without the ravages of Covid-19), means more business for Shopify and its business partners. Shopify is taking advantage of the current momentum by building a U.S. distribution network for storing and shipping products to customers and merchants. Meanwhile, the Shopify success story is not based on optimism alone. There is solid evidence to expect better days ahead for this firm. This is because merchant solutions revenue climbed to $785 million and that's an increase of 52% over the previous year. Again, subscription solutions revenue stands at $328.1 million and this represents a 70% hike over the previous year.

First quarter Shopify stock results for 2021 have shown an increase in revenue growth of 110% compared to last year with profits surging on the back of increased subscriptions and the investment in Affirm.

What is Shopify

Shopify is an ecommerce platform that has benefited from the additional lift in online sales that occurred as a result of the pandemic. The Canadian company has already grown 40-fold in the last five years and expectations had been that growth would slow this year after such a stellar performance. Nonetheless, shares in Shopify rose an additional 10% on the announcement.

Analysts View of Shopify

Analysts have been speculating for months about when the global recovery would slow online spending as consumers returned to more traditional shopping habits, but these results show revenue accelerating for the company for all of geographic locations and for all types of merchants on the platform. Gross merchandise volume (GMV) on the platform (a measure used by the ecommerce industry to measure the total value of goods sold in a given period) doubled from the previous year to reach over $37 billion, although this was largely fueled by countries outside the US, according to the company.

Shopify has said that it does expect some moderation in growth in the coming year, however, as the impact of the pandemic lessens and shops reopen which means customers are likely to return to physical stores rather than shopping exclusively online.

Shopify First Quarter Results

Shopify stock results show it had better than expected revenue and adjusted earnings in the quarter of $988 million (analyst expectations were $863 million) compared with $470 million in the previous year. This resulted in adjusted earnings per share of $2.01 (analyst expectations were $0.77). Net income was also boosted by an $1.3 billion gain in its shares in Affirm Holdings which was listed on the stock exchange in January. The partnership with Affirm, sealed the previous July, resulted in Shopify receiving 20 million shares in the company.