Shopify Stock Drops significantly on future guidance

Feb 16, 2023 thejournalbiz

Shopify shares fell 15% in morning trading Thursday!

That was only after the company provided softer-than-expected guidance for its first quarter in 2023.

The stock was on track for its biggest one-day percentage decrease since February 2022, according to Dow Jones Market Data.

Tweet on Shopify

@Shopify shares fell 15% in morning trading Thursday after the company provided softer-than-expected guidance for its first quarter in 2023.#shopify #StocksoftheDay pic.twitter.com/Hhb2hJEjr1

— The_Journalbiz (@the_journalbiz) February 16, 2023

Factset chart on Shopify

The Canadian e-commerce platform forecasts first-quarter revenue growth to be in the high teens on a percentage basis. Consensus estimates see 20% growth from its year-ago revenue of $1.2 billion.

Shopify also said gross margin would be up slightly from fourth-quarter levels.

For the fourth quarter, Shopify said its net loss widened to $623.7 million, or 49 cents per share.

Adjusted earnings per share came to 7 cents. Analysts polled by FactSet expected an adjusted loss of 1 cent.

Revenue rose to $1.73 billion, better than the $1.65 billion expected.