SHOP Stock Alert: The Warning That Has Shopify Shares Stumbling Today

Shopify (NYSE:SHOP) stock is taking a beating on Wednesday as investors react to news from the company’s most recent earnings report.

Image of a shopping cart toy on a wooden desk carrying a mobile phone that features the Shopy (SHOP Stock) logo on it

Source: justplay1412 / Shutterstock.com

The Shopify earnings report for the fourth quarter of 2021 includes the e-commerce company’s expectations for 2022. Unfortunately for holders of SHOP stock, not everything is sunshine and rainbows.

Among that outlook is a warning that the company will see lower revenue during its first three quarters. Shopify attributes this to the lack of e-commerce growth that was experienced during the Covid-19 lockdowns last year.

Shopify includes the following statement in its latest earnings report.

“Our outlook for 2022 assumes continued secular tailwinds for entrepreneurship and digital commerce transformation against a more measured macro environment relative to 2021. While we believe that the COVID-triggered acceleration of ecommerce that spilled into the first half of 2021 in the form of lockdowns and government stimulus will be absent from 2022, and there is caution around inflation and consumer spend near term, for the full year, we see economic growth supporting the continued penetration of retail by ecommerce.”

Another black mark on the earnings report is adjusted earnings per share of $1.36 on revenue of $1.38 billion. For comparison, Yahoo Finance shows that Wall Street was expecting adjusted EPS of $1.58 alongside revenue of $1.69 billion in the current quarter.

Investor sin SHOP stock will also note that heavy trading is taking place alongside its Q4 2021 earnings report. As of this writing, more than 3 million shares of the company’s stock have changed hands. That’s already above its daily average trading volume of around 1.7 million shares.

SHOP stock is down 17.2% as of Wednesday morning and is down 46.1% since the start of the year.

Investors looking for more recent stock market news are in the right place!

InvestorPlace has all the latest stock coverage that traders need to know about for Wednesday! That includes this morning’s biggest pre-market stock movers, as well as the latest Monster Beverage (NASDAQ:MNST), and Tesla (NASDAQ:TSLA) stories. You can find all of that info at the following links!

More Wednesday Stock Market News

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/02/shop-stock-alert-the-warning-that-has-shopify-shares-stumbling-today/.

©2022 InvestorPlace Media, LLC