Shopify Stock Falls on Earnings. Why Investors Aren’t Satisfied.

Shopify’s third-quarter earnings failed to satisfy Wall Street as investors looked beyond better-than-expected revenue and gross merchandise volume. Revenue surged 32% to $2.84 billion in the quarter, topping the consensus call for $2.76 billion among analysts polled by FactSet Gross merchandise volume from merchant customers rose 32% to $92 billion, topping the 28% gain to $89.12 billion Wall Street had projected. On the positive side, Shopify said Tuesday morning it expects revenue to grow “at a mid-to-high-twenties percentage rate.”