Shopify delivered strong third-quarter results, posting double-digit increases in both revenue and gross merchandise value, but its shares slipped as investors appeared to take profits. Cameco, meanwhile, reported weaker-than-expected earnings, though its long-term outlook remains supported by growing investment in nuclear energy.
BNN Bloomberg spoke with Diana Avigdor, vice-president, portfolio manager and head of trading at Barometer Capital Management, about investor reaction to Shopify’s results, the broader earnings season, and how nuclear expansion plans are shaping Cameco’s prospects.
Key Takeaways
- Shopify posted 32 per cent growth in both revenue and gross merchandise value, with free cash flow margin at 18 per cent.
- Shares fell on a “sell-the-news” reaction, reflecting investor caution in high-growth, high-valuation stocks.
- Cameco missed across key metrics, though its dividend increase and exposure to U.S. nuclear build-out support the long-term story.
- About a third of TSX composite companies have reported, showing sales growth of roughly three per cent and earnings growth of six per cent.
- In the U.S., tech and financials continue to lead earnings growth, with overall S&P 500 profits tracking up about 16 per cent year over year, Avigdor said.
Read the full transcript below:
ROGER: Shares of Shopify are trending lower despite an earnings beat and posting double-digit increases in revenue and gross merchandise value. We also have earnings results from Cameco, which reported revenue that missed expectations. Its shares are also under pressure. Let’s check in now with Diana Avigdor, vice-president, portfolio manager and head of trading at Barometer Capital Management. Diana, thanks very much for joining us today.
DIANA: Thank you very much for having me on.
ROGER: It’s an interesting earnings season. Shopify had, for the most part, good numbers, and it was down. It’s down again today. Your thoughts on what’s going on?
DIANA: Sure. Shopify had excellent earnings, and yes, yesterday’s sell-off — that “sell-the-news” reaction — was helped by negative market sentiment triggered by valuation concerns. We had a pretty sloppy market yesterday, and for the first time in quite a while, many investors have been expecting a bit of consolidation. So high-growth, momentum, and expensive stocks took the brunt of it.
We’re seeing some stabilization today. I’m watching the markets right now, and Shopify is roughly flat, sitting at a key support level around its 50-day moving average. That’s the key to what’s happening in the market — the anatomy of this correction or consolidation. It’s healthy, as long as it holds the right levels.
ROGER: Does it feel like it’s going to hold those levels? What are your thoughts on where we’re heading?
DIANA: In Canada, we’re about a third of the way through earnings season, and it’s going to depend on how results continue. In the U.S., we’ve had several quarters of strong aggregate earnings, which has been supportive.
In Canada, roughly 80 of 212 TSX Composite companies have reported so far, showing sales growth of just over three per cent and earnings growth of around six per cent. That’s important, and the surprises have also been positive. We’ve seen positive surprises in the energy space — Suncor is trading nicely higher — and gold names are also performing well.
So, to answer your question, yes, it looks okay so far, as long as earnings hold up. If the U.S. government reopens soon, which there’s talk of, we’ll start getting more economic data. We saw some U.S. employment numbers today — secondary data, but still positive.
ROGER: Let’s talk about another Canadian company reporting earnings — quickly, a buy on Shopify?
DIANA: Yes, a buy on Shopify.
ROGER: Okay. Cameco reported a revenue decline, but guidance looked to be in line.
DIANA: It was a little disappointing. They missed on all metrics. That said, we own it, we like it, and we’re continuing to hold it for clients. It’s a complex business — engineering-heavy — so it’s not always easy to forecast sales smoothly. There aren’t as many consistent data points.
The stock was down about four and a half per cent in the U.S. pre-market, but here in Canada it’s now down only about half a per cent — a decent clawback, considering the numbers. They did increase the dividend by about 50 per cent, which is a positive.
But right now, it’s not really about the earnings. A week or so ago, the U.S. government announced an US$80-billion investment in building out nuclear capacity. The U.S. hasn’t commissioned a nuclear reactor in 13 years and needs to catch up — China is building aggressively, and Russia is testing.
Cameco, as a half-owner of Westinghouse, stands to benefit since Westinghouse is a key U.S. government contractor. Down the road, there’s also the potential catalyst of an IPO once the metrics align for Cameco and Brookfield, its partner. This is part of a broader nuclear build-out story, and that’s the bigger picture.
ROGER: We’re getting some other earnings today. Any thoughts on IA Financial?
DIANA: We don’t focus on that. These two — Shopify and Cameco — were our focus this morning since we own them for clients.
ROGER: And south of the border — your thoughts on what’s happening with S&P 500 earnings?
DIANA: The sell-off was triggered by Palantir, which trades at more than 100 times earnings. They had a fantastic quarter and then sold off sharply. The high-flyers are the ones being punished.
We’re still waiting for Nvidia, which is off-cycle but expected to deliver strong results that will contribute significantly to overall U.S. earnings growth. There’s a big dispersion — smaller growth elsewhere, but tech is growing around 30 per cent on aggregate.
So, tech remains the main driver, alongside some commodity pockets like gold and nuclear. We’re nearing the end of earnings season in the U.S.; financials were strong earlier, two or three weeks ago. Heading into the fourth quarter, things look stable — unless new economic data changes the outlook.
ROGER: Diana, thank you very much for joining us today.
DIANA: Thank you for having me.
ROGER: That’s Diana Avigdor, vice-president, portfolio manager and head of trading at Barometer Capital Management.
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This BNN Bloomberg summary and transcript of the Nov. 5, 2025 interview with Diana Avigdor are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
