Surprising $SHOP news:

"Shopify entered into a definitive agreement to sell the majority of our logistics business, including the people, technology, and services related to these operations, to Flexport, a leading tech-driven global logistics platform."

"Under the terms of the agreement, Shopify will receive stock representing a 13% equity interest in Flexport, on top of its existing equity interest. Shopify will also name a director to Flexport's board."

I think this is a good move given that this effectively puts low-margin business pressure off of its books while still having a horse in the game given the board seat and stake.

$SHOP also lays off an additional 20% of its workforce on top of the 10% announced earlier.

This enables a tremendous margin expansion into quite literally SaaS % territory, which probably triggered this rerating in pre-market, shares are up 17% as of the writing of this.

I'll re-run the numbers myself and see where I land after the call.