Shopify (SHOP) Stock Extends Drop From All-time Highs to Nearly 80% After Disappointing Results

(Updated - May 5, 2022 9:48 AM EDT)

U.S.-listed shares of Shopify (NYSE: SHOP) are down nearly 17% today after the company reported lower-than-expected Q1 EPS, revenue, and gross merchandise value (GMV).

The e-commerce giant reported Q1 adjusted EPS of 20c, compared to $2.01 in the year-ago period and significantly lower than the analyst consensus of 64c per share. Revenue came in at $1.2 billion, up 22% YoY again short of the expected $1.25 billion.

Subscription revenue stood at $344.8 million in the quarter, up 7.5% YoY and below the analyst estimates of $364.6 million. Gross payment volume was reported at $22 billion, up 27% YoY, though below the consensus projection of $23.33 billion.

The e-commerce company expects year-over-year revenue growth lower in the first half of the year, and expects it to peak in Q4. SHOP has also said it agreed to acquire Deliverr for $2.1 billion by paying 80% cash and 20% in stock.

Heading into the earnings, Citi analyst Tyler Radke lowered the PT to $534.00 per share from $882.00 to reflect mounting headwinds.

“We broadly reduce our estimates based on weaker consumer sentiment, higher expenses given elevated CAC, and management’s stated plans to reinvest in the business and bring Fulfillment in-house,” the analyst wrote in a client note.

Shopify stock price is now down roughly 77% from the all-time high set in November last year.

By Senad Karaahmetovic

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