Post by
rosewell on Jul 27, 2022 7:57am
Shop
Forget about shopify for this year. Easily coming down. Third quarter will be worse and then tax loss selling. I am sure we will get to 20 stock price and i wouldn't be surprised if we get to 10 even.. DJ Shopify Posts Earnings Miss. But It's the Guidance That's Sinking the Stock. -- Barrons.com Wednesday, July 27, 2022, 7:19 AM ET By Sabrina Escobar Shopifystock slid in premarket trading Wednesday after the e-commerce company posted a wider-than-expected second-quarter loss and indicated losses will increase in the third quarter. Shopify(ticker: SHOP) reported a second-quarter adjusted loss of 3 cents a share, missing estimates calling for earnings of 2 cents. Revenue was $1.3 billion, up 16% year over year and slightly under estimates for $1.33 billion. Gross merchandise volume was $46.9 billion, below projections for $48.8 billion. The company said it expects higher inflation to persist "for the foreseeable future," which, combined with rising interest rates "will pressure consumers' wallets for purchases of goods." It is now expecting to generate an adjusted operating loss for the second half of 2022, with the third-quarter adjusted operating loss set to "materially increase" from the second quarter. Shares ofShopifywere down 5% to $30.01 in premarket trading on Wednesday, extending Tuesday's 14% loss. The stock tumbled on Tuesday after the company said it was laying off about 10% of its workforce in response to slowing e-commerce trends. Write to Sabrina Escobar at sabrina.escobar@barrons.com (END) Dow Jones Newswires July 27, 2022 07:19 ET (11:19 GMT) Copyright (c) 2022 Dow Jones & Company, Inc.