Three Things (11/13)

Shopify’s stellar Q3

Oh, Canada … Shopify’s (SHOP) third-quarter earnings report delivered better-than-expected results, surprising investors and driving the stock up 21% on Tuesday. The Canadian e-commerce platform beat Wall Street’s forecasts with earnings per share of $0.35, surpassing the anticipated $0.27, and revenue of $2.16 billion, ahead of the expected $2.12 billion. Shopify further energized investors with a strong holiday forecast, projecting revenue growth in the mid-to-high 20% range for the next quarter.

The company’s Gross Merchandise Volume (GMV), which measures the total sales processed through its platform, jumped 24% year-over-year, exceeding expectations. Shopify says the growth is due to a surge in larger retail clients joining the platform, including well-known names like Kith, Reebok, and Lionsgate. Additionally, Shopify says its AI-powered Sidekick tool—which helps sellers analyze data—is drawing more merchants to the platform.

During the analyst Q&A, executives said that strong sales growth in Europe helped boost GMV. They also highlighted the trend of large brands consolidating e-commerce operations on Shopify, which marks a notable evolution from the platform’s mom-and-pop roots. 

Shopify President Harley Finkelstein posted a video recap of the results to X, and it received more than 40,000 views in 3 hours—about 10x the average attendance for a large-cap earnings call.

Exxon enters the chat

Hold up … Exxon (XOM) CEO Darren Woods has publicly cautioned President-elect Donald Trump against withdrawing from the Paris Climate Agreement, warning that such a move could destabilize U.S. energy markets and isolate America from global policy efforts. Woods, attending the COP29 climate summit, emphasized that the agreement provides a framework for balancing energy needs with environmental action, urging Trump to take a “common-sense” approach to emissions regulation.

Trump has pledged to expand fossil fuel production by cutting environmental restrictions, yet some experts, including Woods, doubt this will yield significant production increases. U.S. oil output already reached record highs under the Biden administration, reports Marketwatch. Exxon’s chief stressed that consistent policy is critical for companies making long-term investments, warning that abrupt shifts could hinder growth across both fossil and renewable energy sectors.

Bloomberg Opinion columnist Liam Denning points out that presidents inherit energy policies from previous administrations, creating complex landscapes for the industry. Trump’s re-election follows two administrations with contrasting climate agendas, leading to further uncertainty for energy markets.

Adding more nuance to the situation is the fact that many conservative-led districts are seeing benefits from Biden’s clean-energy policies, especially through the Inflation Reduction Act.

Speaker Mike Johnson recently ran into an awkward moment in Syracuse, New York when he criticized the CHIPS Act—a policy that’s set to bring thousands of high-paying jobs to the region through a major Micron (MU) investment. His comments created tension with a local representative from his own party, who pointed out the act’s critical role in supporting the local economy.

Earnings scoreboard

It’s all happening … As earnings season blitzes on, here’s your mid-week recap:

Good

Meh

Ugly

One more thing: On Tuesday, the Dow fell 0.86%, the S&P 500 dipped 0.29%, and the Nasdaq slipped 0.09%, pausing their postelection rally as investors await upcoming inflation data. Despite this pullback, the S&P 500 is up about 14.6% for the year, while the Nasdaq has gained 34.2% as of market close.