Cramer is ‘incredibly bullish’ on Shopify stock price after Q1 earnings

Shares of Shopify Inc (NYSE: SHOP) are up 25% on Thursday after the eCommerce company reported a surprise profit for its first financial quarter.

Shopify stock up on the sale of logistics unit

The tech stock is being rewarded today also because the multinational revealed plans of selling its logistics business to Flexport. Reacting to the announcement, Jim Cramer said:

On the downside, gross margins in the recently concluded quarter tanked 550 basis points to 47.5%. Still, the Canadian firm expects about a 25% growth in revenue and free cash flow profitability in Q2.

Shopify stock price is now up roughly 65% for the year.  

Notable figures in Shopify Q1 earnings print

• Earned $68 million that translates to 5 cents per share
• Had $1.5 billion loss in the same quarter last year
• Adjusted EPS printed at one cent as per the press release
• Total revenue jumped 25% year-on-year to $1.5 billion
• Consensus was 4 cents loss on $1.42 billion in revenue

Also on Thursday, Shopify said it will lower its global headcount by 20%. On “Squawk on the Street”, Cramer added:

His outlook is in line with Wall Street that currently has a consensus “overweight” rating on Shopify stock price.