Shopify shares fell as much as 19% before the market opened Tuesday and were still down about 7% that afternoon after third-quarter GMV and subscription revenue both missed analyst estimates. GMV rose 29% to $119.1 billion against the roughly $120.1 billion analysts expected, and subscription revenue grew 20% to $836 million, below the $850.2 million forecast. Total revenue climbed 32% to $3.74 billion, while net income rose to $462 million from $264 million. CFO Jeff Hoffmeister told analysts that Shopify’s spending on Sidekick, its AI assistant for merchants, cut into subscription margins because the cost of delivering those services rose 37%.
