Shopify (NYSE:SHOP) news for Thursday includes SHOP stock taking a beating after withdrawing its guidance.
According to a Shopify news release, the company is suspending its financial guidance for the fiscal full year of 2020. The reason behind this is the uncertainties caused by the coronavirus from China.
The Shopify news release notes that the company plans to release first-quarter earnings report before markets open on May 6, 2020. While it has pulled its guidance, it does say it expects to report revenue and adjusted operating income that is in line or ahead of its expectations.
The update concerning the coronavirus and its fiscal 2020 outlook comes alongside some other Shopify news. That includes $200 million commitment to Shopify Capital and other actions to protect its merchants and investors.
Shopify also points out that it is analyzing data to determine the effects coronavirus is having on businesses. It mentions that this includes many shoppers turning to e-commerce as they avoid physical retailers.
With more shoppers heading online, Shopify is seeing a change in how merchants operate. That includes switching to more vital categories to meet customer demand. They have also been offering discounts to boost sales.
The Shopify news release also notes that the company isn’t dealing with unfair merchants. It has been terminating sellers on its website that are offering inflated prices on goods during the coronavirus outbreak.
SHOP stock was down 11% as of Thursday afternoon.