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What We're Watching When Shopify Reports Earnings

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With the stock at an all-time high, here's what our contributors are watching.

E-commerce platform company Shopify (SHOP 3.52%) is trading near its all-time highs, and with merchant sales doubling year over year in the third quarter, it's not hard to see why. However, contributor Brian Withers thinks the company could be set to report its best quarter yet. In this Fool Live video clip, recorded on Jan. 25, Brian and fellow contributors Matt Frankel, CFP, and Jason Hall discuss what they're looking for when Shopify releases its latest results from the crucial holiday quarter. 

Brian Withers: So I threw all the tickers in the chat, and we're getting started with Shopify. They had a huge post-Thanksgiving weekend. I don't know that Black Friday weekend means the same thing as it did, but sales were up 76% over last year. It's a little bit slower than their third-quarter growth, which, their sales were up over 100% in the third quarter.

But I think this is a little bit of spreading out over time -- people are not as worried since they're not rushing to be at Walmart (NYSE: WMT) at 5 a.m. when the doors open. Your online presence is always there, so it's pretty easy to decide when you want to go.

The stock has performed exceedingly well this past year. It's within 10% of its all-time high. Over the last two quarters, they've had the best quarter on record in a number of different ways, both with customers, with revenue, with penetration, with increased customer spend. It's just been fantastic. I'm looking for them to have the best quarter ever in Q4, especially with the 35% increase in online sales reported over the holidays just in general.

The earnings haven't yet been announced. They're looking to be around Feb. 10. What I'm watching for is activity in fulfillment centers. More customers coming on for that. International and Shopify Plus, these are three long-term growth trends, and I am just looking for some updates. You guys have anything to add?

Jason Hall: I love the business. The long-term trends are all in their favor, and they're so sticky and they get so embedded with their customers that people want to do more with them, not less.

Matt Frankel: I have to say that my favorite part of following Shopify is the implications for the rest of the retail landscape that's in online retail. That's honestly my favorite part of following the company.

Hall: Yeah. That's hard to argue with. There's no doubt about it. There's not a lot of companies that that single company informs so much else that's happening out there.

Withers: Billions and billions spent on the platform.

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