Why Shopify Stock Fell Hard This Week
(NYSE: SHOP) stock declined significantly this week. Shares dropped 16% through Thursday trading as compared to a 1.5% rally in the wider market, according to data provided by S&P Global Market Intelligence. That slump added to a tough year so far for owners of the e-commerce infrastructure platform, which is down 20% in 2024, while the S 500 has risen 9%.
This week's decline occurred after Shopify failed to meet high expectations around its Q1 earnings release.
The business is still doing well, to be sure. Sales volumes jumped 29% after accounting for the recent sale of the logistics business. Shopify remained profitable on an adjusted earnings basis and, in fact, boosted its gross profit margin to 51% of sales from 48% of sales a year ago. Cash flow improved to 12% of sales from 6% a year earlier, which is a strong marker for any software-as-a-service business.
Source Fool.com
Shopify Inc Aktie
Leichte Community-Bevorzugung: Shopify Inc mit mehr Buy- als Sell-Einschätzungen.
Ein prognostiziertes Kursziel von 75 € für Shopify Inc zeigt ein Potenzial von über 20% im Vergleich zum aktuellen Kurs von 56.33 €.
