Core Insights - Global-E Online and Shopify reported Q3 2025 earnings that indicate divergent strategies in cross-border e-commerce [1] Company Summaries Global-E Online - Global-E Online's Q3 2025 earnings reflect a strong focus on expanding its cross-border e-commerce capabilities [1] - The company is likely to leverage its technology to enhance international sales for its clients [1] Shopify - Shopify's Q3 2025 earnings suggest a different approach, possibly emphasizing domestic markets while still engaging in cross-border e-commerce [1] - The company may be prioritizing its platform enhancements to support merchants in navigating international sales [1]

Core Insights - GoodDay Software has raised an additional $7 million in funding, bringing its total capital raised to $13.5 million, with participation from both new and existing investors [1][7]. Company Overview - GoodDay Software is developing GoodDayOS™, an AI-native ERP alternative tailored for inventory-driven Shopify brands, contrasting with traditional ERP systems designed for manufacturers and accountants [2][8]. - The company aims to provide a unified system for managing inventory, purchase orders, landed costs, presales, and multi-channel operations, allowing brands to launch quickly and at a lower total cost of ownership compared to traditional ERP platforms [3][8]. Product Development - GoodDay has focused on creating a reliable system for inventory and operational data, with plans to introduce GoodAI Agentic Workflows and Agents in 2026, which will enhance operational efficiency by actively assisting operators [4][7]. - The new funding will facilitate the expansion of GoodDayOS™ into finance and accounting operations, as well as deeper integrations within the Shopify ecosystem [7]. Market Position - More than 40 Shopify brands, including notable names like Lola Blankets and Halfdays, are currently utilizing GoodDay's platform, indicating strong market adoption [5]. - The company is recognized for its innovative approach to inventory management, which is considered the most complex aspect of retail operations, setting it apart from other next-gen ERP solutions [8].

Core Insights - MercadoLibre (MELI) and Shopify (SHOP) have transformed into comprehensive digital commerce ecosystems, integrating payment networks, logistics, and merchant services beyond their original business models [1][2] - Both companies are pursuing similar strategic priorities, focusing on payment penetration, AI deployment, and enterprise merchant acquisition, making them comparable investment opportunities [2] MercadoLibre (MELI) Analysis - MercadoLibre operates an integrated commerce and fintech ecosystem in Latin America, generating revenue through merchant commissions, payment processing fees, and financial products [3] - Competitive pressures in Brazil are significant, with a reduction in free shipping thresholds leading to a 42% increase in items sold, but ongoing subsidization is required to maintain growth [4] - Geographic concentration in volatile Latin American markets poses structural vulnerabilities, with Argentina's economic instability affecting consumer spending and credit deployment [5] - The Zacks Consensus Estimate for MELI's 2025 EPS is $39.80, reflecting a marginal annual growth of 5.6% [6] Shopify (SHOP) Analysis - Shopify operates a software-as-a-service platform that enables merchants to sell across various channels, generating recurring subscription revenues and transaction fees [7] - Geographic diversification across 175 countries provides operational stability, with European markets showing a 49% year-over-year increase in gross merchandise volume [9] - Shopify Payments achieved a 65% penetration of gross merchandise volume, indicating strong integration despite complex regulatory environments [9] - The Zacks Consensus Estimate for SHOP's 2025 EPS is $1.45, indicating year-over-year growth of 11.54% [11] Price Performance and Valuation - Over the past six months, MELI shares have declined by 12%, while SHOP shares have appreciated by 36.9%, reflecting differing market conditions and execution strategies [12] - MELI trades at a forward price-to-sales ratio of 2.87x compared to SHOP's 14.56x, with MELI's valuation discount attributed to emerging market risks and margin pressures [14] - Shopify's disciplined execution and geographic diversification position it favorably against MercadoLibre, which faces profitability challenges due to competitive pressures [17]

Market Overview - The Dow Jones Industrial Average decreased by 0.1%, while the S&P 500 fell by 0.50% and the Nasdaq Composite dropped by 1%, marking its worst performance since mid-December [1] Geopolitical Concerns - Ongoing geopolitical tensions in regions such as Iran, Greenland, and Venezuela, as well as domestic issues in the U.S., are causing trader concerns [1] Supreme Court Expectations - Investors were anticipating a ruling from the Supreme Court regarding tariffs, which did not occur, contributing to market unease [1] Options Activity - There were 1,245 calls and puts with volume-to-open-interest ratios of 1.24 or higher, with notable activity in Shopify, Starbucks, and Pinterest, all of which are considered long-term investment opportunities [2] Shopify Options Analysis - Shopify exhibited four unusually active options with volume-to-open-interest ratios between 1.47 and 4.67, indicating potential trading opportunities [3] Multi-leg Trade Strategies - A Long Strangle trade involving Shopify's January 23 options includes buying a $170 call and a $155 put, anticipating significant stock movement in either direction over the next nine days [4] - The net debit for this trade is $420, representing 2.67% of the share price of $157.61, with a maximum loss occurring if the share price is between $174.20 and $150.80 at expiration, which has a probability of 44.8% [5] Expected Stock Movement - The expected price movement for Shopify over the next nine days is 5.07% or $7.98, with a higher likelihood of profiting from a downside move [6] Long Straddle Strategy - A Long Straddle strategy is also considered, where the strike price for both the call and put is the same, with a net debit of 20.41% of the stock price at $3,215 [7]

Core Insights - Shopify (SHOP) shares closed at $157.51, 14% lower than the 52-week high of $182.19, but have increased by 52.2% over the past year, outperforming the broader Zacks Computer and Technology sector's 28.5% appreciation [1] Valuation - Shopify is considered significantly overvalued with a Value Score of F, trading at a 12-month price/sales (P/S) ratio of 14.56X compared to the sector's 7.46X [2] Comparison with Competitors - Shopify shares are more expensive than those of Amazon (3.16X), Wix.com (2.16X), and Commerce.com (0.90X) in terms of P/S multiples, although Shopify has outperformed these companies in share price performance over the past year [5] Earnings Projections - The Zacks Consensus Estimate for Shopify's 2025 earnings is $1.45 per share, indicating an 11.54% year-over-year growth, with revenues projected at $11.46 billion, reflecting a 29% increase [10] - For 2026, earnings are estimated at $1.77 per share, showing a 21.7% growth, with revenues expected to reach $13.97 billion, a 22% increase [11] Growth Drivers - Shopify's international gross merchandise volume (GMV) grew by 41% year-over-year in Q3 2025, with Europe contributing 21% of revenues [14] - The company is expanding its international presence through partnerships and new services, including Shopify Payments and fulfillment options, enhancing merchant access to growth funding [15][16] AI Integration - Shopify is leveraging AI to improve shopping experiences, utilizing tools for product discovery and enhancing customer interactions through partnerships with companies like OpenAI and Microsoft [12][13] Conclusion - While Shopify faces near-term challenges from gross margin pressures and competition, its long-term prospects are bolstered by AI integration and international expansion, suggesting that current investors should hold their positions [17]

Group 1 - Shopify's stock price has entered a correction phase, declining by 13% from its peak in October of the previous year [1] - The current trading price of Shopify is $157, indicating potential further downside risks as it develops several concerning chart patterns [1]

Oil Market - Oil prices have been rising due to protests in Iran, a key OPEC member, which may disrupt production and tighten crude supplies. The March crude oil contract increased by 95 cents to US$61.88 per barrel [1] Canadian Energy Sector - Canada's energy sector reacted to U.S. actions against Venezuela, which produces similar crude types. Shares of Canada's largest energy producers initially fell but rose later, influenced by a tepid U.S. response to investing in Venezuela [2] Canadian Tech Sector - The Canadian tech sector experienced a decline, primarily due to Shopify Inc. shares dropping by 5.94%. Concerns were raised about Shopify's ability to capture revenue and earnings growth amid a worsening macroeconomic outlook [3] U.S. Stock Market - U.S. stock indices fell, with the Dow Jones down 42.36 points, the S&P 500 down 37.14 points, and the Nasdaq down 238.12 points, following disappointing profit reports from major banks [4] - Wells Fargo's stock fell 4.6% due to weaker-than-expected profit and revenue, attributed to lower trading fees [4] - Bank of America shares dropped 3.8% despite stronger-than-expected profits, driven by concerns over upcoming expenses [5] - Citigroup's stock fell 3.3% amid its turnaround efforts under CEO Jane Fraser [5] Market Sentiment - There are growing concerns about whether banks can maintain profitability as macroeconomic conditions worsen and costs rise. Tech stocks, which had previously surged due to AI enthusiasm, are now facing scrutiny over their high valuations [6] - Nvidia's stock fell by 1.4%, and Broadcom's stock decreased by 4.2% [7]

Core Viewpoint - US AI application software stocks experienced significant declines on Wednesday, indicating a potential shift in market sentiment towards this sector [1] Group 1: Stock Performance - Applovin (APP.US) fell over 9.7% [1] - Shopify (SHOP.US) decreased by more than 7% [1] - Reddit (RDDT.US) dropped over 3.5% [1] - Palantir (PLTR.US) and Adobe (ADBE.US) both saw declines exceeding 1% [1]

Core Insights - Agentic Commerce represents a significant shift in the way commerce operates, potentially transforming the landscape of internet advertising, e-commerce, and payment infrastructure if successfully implemented [2][5] - The article explores two main questions: 1) Can Agentic Commerce be commercially viable? 2) If successful, how will it reshape the distribution of benefits across the internet ecosystem? [5] Commercial Viability - The article reviews past failures of Meta and Google in e-commerce, contrasting their approaches with those of OpenAI and Perplexity, to identify which third-party models (3P) are most likely to succeed in the future [5][24] - The potential total addressable market (TAM) for three consumer behavior categories—Impulse Buys, Routine Essentials, and Life Purchases—is estimated to be $3 trillion, with Lifestyle and Functional Purchases being the most promising areas for Agentic Commerce [8][9] E-commerce Spectrum - E-commerce is described as a continuous spectrum, with Amazon and Shopify at opposite ends, defined by who acts as the Merchant of Record (MoR) [10][11] - The distinction between "Platform is the MoR" (e.g., Amazon) and "Merchant is the MoR" (e.g., Shopify) affects the business scale, merchant control over customer data, and the potential for disruption in payment systems [12][13] Agentic Commerce Paths - Perplexity and ChatGPT represent two different approaches to Agentic Commerce, with Perplexity acting as the MoR and ChatGPT allowing merchants to retain that role [14][19] - OpenAI's Agentic Commerce Protocol (ACP) decouples the front-end checkout experience from back-end payment processing, allowing merchants to maintain their existing payment service providers while integrating with ACP [15][18] Historical Context - Google and Meta's reluctance to become MoR contributed to their struggles in e-commerce, as they prioritized advertising revenue over the complexities of managing e-commerce transactions [24][26] - The article suggests that if Google or Meta had developed a protocol similar to ACP, their e-commerce trajectories might have been different [26] Impact on Advertising and Payment - The article discusses how Agentic Commerce could redefine the relationship between advertising costs and commission rates, likening both to a form of "digital tax" [32][33] - Shopify is positioned as a structural winner in the Agentic Commerce context, benefiting from its lack of MoR responsibilities and the potential for increased market penetration among small and medium-sized businesses (SMBs) [38][39] Future Considerations - The article envisions a future where a Universal Catalog could be developed to facilitate AI-driven shopping experiences, requiring rich and structured metadata to support precise consumer needs [44]

Core Viewpoint - The article discusses the current state of the U.S. stock market, highlighting that despite reaching new highs, fundamental indicators suggest consumer weakness, raising questions about the macroeconomic situation [1]. Group 1: Shopify's Performance - Shopify's stock price has surged over 60% in the past year, driven by strong fundamentals, but investors are concerned about whether this growth can continue into 2026 [2]. - Analysts express cautious optimism regarding Shopify, maintaining a buy rating due to its proven ability to generate excess returns, especially for long-term investors willing to tolerate short-term volatility [6][13]. - Shopify's total addressable market (TAM) is currently valued at $849 billion, with significant growth potential over the next 3-5 years [6]. Group 2: Revenue and Growth Metrics - In the most recent quarter, Shopify's revenue grew by 32% year-over-year, reaching $2.84 billion, with merchant solutions contributing significantly to this growth [7][8]. - Merchant solutions revenue reached $2.145 billion, accounting for 75% of total revenue, and grew by 38% year-over-year, contributing 28 percentage points to the overall revenue growth [8]. - Analysts expect Shopify's GMV growth to slow to the high 20% range in Q4, which could disappoint investors and impact stock performance [9][13]. Group 3: Profitability and Market Sentiment - Shopify's profit margins have shown volatility, with a downward trend in gross margins due to a shift towards lower-margin payment services and increased operational expenses [10]. - The company's operating expenses accounted for 33% of revenue in Q3, and further increases are expected in Q4, which may pressure profit margins and affect market sentiment [10]. - Recent retail sales data indicates a potential slowdown in consumer spending, which could impact Shopify's performance in the upcoming quarter [11]. Group 4: Valuation Considerations - Shopify's forward price-to-sales ratio is currently at 15x, which is considered reasonable for a company with over 30% revenue growth, despite being on the higher end compared to peers [13]. - The sensitivity of Shopify's performance to consumer spending fluctuations is highlighted, especially in light of recent holiday sales data suggesting a potential decline in growth momentum [13]. Group 5: Investment Recommendations - For long-term investors, maintaining a hold on Shopify is recommended, as it is expected to continue generating excess returns [14]. - Short-term investors are advised to capitalize on stock price fluctuations to achieve higher returns [14].