(NYSE: SHOP) stock has made a head-turning rebound so far in 2023, up over 80% through early June compared to a 13% increase in the S 500. Wall Street was thrilled to hear last month that the company is exiting the costly logistics segment in order to boost efficiency and profitability. Shopify's strong first-quarter sales growth also points to an encouraging return to net profitability on the way.
But are investors being too optimistic, or can the e-commerce platform giant still deliver excellent returns from here? Let's dive right in.
Wall Street was excited by the cost savings involved with selling its logistics segment, but Shopify's growth update had more concrete and immediate benefits for fiscal 2023. Sales jumped 27% in the Q1 period that ran through late March, maintaining the strong momentum that investors saw in the fourth quarter of last year.
Source Fool.com