Shopify reverts to profitability due to reduced costs and investments in artificial intelligence (AI).

Shopify (NYSE: SHOP) achieved a profitable third quarter by exercising rigorous cost management and implementing artificial intelligence across its product offerings to attract a larger merchant base. This success propelled its U.S. shares up by 10% before the market opened.

In the third quarter, Shopify reported total revenue of $1.7 billion, surpassing analysts’ expectations of $1.67 billion, according to LSEG data. To maintain a competitive edge in the e-commerce market, Shopify has introduced new tools and services while significantly improving product delivery times.

Additionally, the company has integrated AI-driven features into its products through Shopify Magic and its AI assistant, “Sidekick.” Net income attributable to shareholders on a diluted basis amounted to 55 cents per share, marking a positive shift from the 12-cent loss reported in the previous year.

During the same period, expenses decreased by nearly 23%, totaling $779 million.

SHOPIFY TECHNICAL ANALYSIS DAILY CHART:

Technical Overview

Shopify is currently trading within a down channel.

Shopify is positioned below 20&50 Moving Averages (SMA).

The Relative Strength Index (RSI) is in a negative zone, while the Stochastic oscillator suggests a negative trend.

Immediate Resistance level: 50.92

Immediate support level: 47.82

HOW TO TRADE SHOPIFY

Shopify initially experienced a significant price increase, followed by a decline that led to a period of trading at lower levels. It made an attempt to rise from a support zone, but this upward movement was short-lived, resulting in a subsequent price drop. At present, the price is positioned at a crucial support area. If this support level is breached, it could lead to further declines in price.

TRADE SUGGESTION- STOP SELL – 46.61, TAKE PROFIT AT- 39.34, SL AT- 51.46.