Top Cathie Wood Stock Expected To Deliver 772% Earnings Growth. It’s Flashing A Buy Signal.

Cathie Wood often invests in speculative companies with profits that are years away, though Tesla (TSLA) has been profitable for years. So has Shopify (SHOP), a top-10 Ark Invest holding. Thanks to a strategic shift, Shopify earnings growth is expected to skyrocket in 2023, with strong gains continuing next year. And SHOP stock is flashing a buy signal.

Shopify Logistics Sale

Shopify announced the sale of its fulfillment business to privately held Flexport on May 4, with the deal closing in June. The e-commerce software giant in recent years had sought to challenge Amazon.com (AMZN) in third-party fulfillment for online orders. But it turned out to be an “expensive experiment.”

Shopify now holds a 13% stake in Flexport, but exiting logistics will mean the company can slash costs. Meanwhile, gross merchandise growth is picking up after slowing sharply following the coronavirus pandemic boom.

Shopify Earnings

Shopify earnings plunged to 4 cents a share in 2022 from 64 cents in 2021. The end of the pandemic meant a big slowdown in e-commerce growth.

First-quarter earnings, reported May 4 along with the Flexport deal, tumbled 50% vs. a year earlier. Sales grew 25% to $1.51 billion.

Source: Investors Business Daily