Shopify stock rally ends due to weak 2023 earnings forecast
E-commerce Shopify (SHOP) on Wednesday reported fourth-quarter earnings and revenue that beat analysts’ estimates. But Shopify’s stock fell as the company’s 2023 earnings forecast fell short of expectations.
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In the fourth quarter ended Dec. 31, Canadian-based Shopify said it earned 7 cents per share on an adjusted basis, down 50% from a year earlier. Shopify’s stock revenue surged 26% to $1.7 billion, according to the company.
Analysts had expected Shopify’s earnings report to record a 1-cent loss on $1.65 billion in revenue. A year earlier, Shopify earned 14 cents per share on $1.38 billion in revenue.
Shares of Shopify fell 6.6% to 49.88 in extended trading on the stock market today. At the regular session on Wednesday, the shares rose by 6.5%.
Shopify Stock: High Teens Revenue Growth
For the whole of 2023, the company predicts growth in revenue for “older teenagers”. Analysts had forecast revenue growth of more than 20%.
Shopify builds e-commerce websites for small businesses and partners with others to process digital payments and shipping.
After falling in 2022, Shopify stock is up 44% this year.
Shopify raised contract prices for merchants in January.
The company is building a distribution network in the US to store and deliver goods to its merchant customers.
Follow Reinhardt Krause on Twitter @reinhardtk_tech updates on 5G wireless networks, artificial intelligence, cybersecurity and cloud computing.
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