Shopify's shares rise 28% due to earnings and logistics sale

E-commerce company Shopify saw a surge in its share price by 28% after it reported better-than-expected earnings for the first quarter. The company also announced that it had sold its logistics unit and would reduce its headcount by 20%. Shopify had been planning to pivot away from logistics and had been bracing for more layoffs, following a round of cuts last year. The company sold its logistics unit to freight company Flexport, which will become Shopify's logistics partner. The deal also includes the sale of Deliverr, a shipping service that Shopify purchased last year for $2.1 billion. In the new deal, Shopify will receive a 13% share in Flexport. Separately, the UK's Ocado Group agreed to purchase Shopify's warehouse automation provider, 6 River Systems. Shopify's first-quarter revenue was $1.51 billion, surpassing estimates of $1.43 billion and adding $0.01 per share. The company benefited from its integration on the websites of other businesses, such as Mattel and Coty. In summary, Shopify's stock surged after it reported a profit and the sale of its logistics business. The company also announced a new round of layoffs and a strategy shift away from logistics. The deal with Flexport will make it Shopify's logistics partner, and the company will receive a 13% share in the freight company. Meanwhile, the UK's Ocado Group agreed to purchase Shopify's warehouse automation provider, 6 River Systems. The first-quarter revenue was $1.51 billion, beating estimates and adding $0.01 per share.