Why Shopify Stock Was Slumping Today
Shares of Shopify (NYSE: SHOP) were pulling back today on a pair of conflicting analyst notes on the stock. Investors seemed persuaded by an update from UBS, which reiterated a sell rating on the stock. Additionally, the broader sell-off in tech stocks today also seemed to weigh on Shopify shares.
As of 11:45 a.m. ET, the stock was down 3.5%.
Pinpointing the threat from Amazon's Buy with Prime program that is set to roll out to all eligible vendors tomorrow, UBS analyst Kunal Madhukar reiterated a sell rating on Shopify. Madhukar claimed that Buy with Prime could lead to between 6% to 14% of Shopify's revenue and 2% to 6% of its gross profit being at risk.
Source Fool.com
