Despite exceeding first-quarter revenue expectations, Shopify’s shares plummeted by over 21% due to forecasts of slowing growth and continued investment in expanding its customer base. The Ottawa-based e-commerce giant reported $1.86 billion in revenue, a 23.4% increase year-over-year, with merchant sales reaching $60.9 billion.
However, the company faces a $273 million net loss, largely due to swings in startup equity values. Adjusted earnings were $0.20 per share, surpassing estimates. Future projections indicate a revenue growth slowdown, with anticipated higher operating costs and lower margins, contributing to the stock’s decline amid heightened market expectations.
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