Shopify's shares tumble on weak outlook after a very strong start to 2024
Shares of Shopify plunged Wednesday after the Canadian company that helps retailers with online sales warned of easing revenue growth and thinner margins in the current quarter.
That caught a lot of investors off guard after the company rebounded strongly from the pandemic and started 2024 with a bang.
Shopify Inc. predicts that revenue will climb by a high-teens percentage rate for the second quarter, well below the 23% jump in the first quarter.
The e-commerce company anticipates quarterly gross margin will decrease by about 50 basis points compared with the first quarter, when that measured 51.4%.
Shares slid 19.5% in afternoon trading, a bit of a recovery after having been down more than 21% earlier.
For the first quarter, Shopify reported an adjusted profit of 20 cents per share on revenue of $1.86 billion. Analysts polled by Zacks Investment Research expected a profit of 16 cents per share on revenue of $1.84 billion.
Related articles
- LOS ANGELES (AP) — The former interpreter for Los Angeles Dodgers star Shohei Ohtani has agreed to p2024-05-09
Earth Day: How to grocery shop to avoid 'pointless plastic'
ALBANY, N.Y. (AP) — Nature wraps bananas and oranges in peels. But in some modern supermarkets, they2024-05-09Mitchell Parker throws 7 scoreless innings as Nats blank Astros 6
WASHINGTON (AP) — Left-hander Mitchell Parker threw seven shutout innings, and Luis Garcia Jr. had t2024-05-09Elena Rybakina beats Marta Kostyuk 6
STUTTGART, Germany (AP) — Elena Rybakina eased to her third title of the season on Sunday with a 6-22024-05-09Millie Mackintosh stuns in a paint splatter dress as she attends a home décor workshop
Millie Mackintosh stunned in a paint splatter dress as she attended a home décor workshop on Tuesday2024-05-09Conservative Brazilians laud Elon Musk at rally in support of ex
RIO DE JANEIRO (AP) — Conservative Brazilians heaped praise Sunday on Elon Musk at a rally in suppor2024-05-09
atest comment