Market Musings


Shopify Stock: Why is SHOP stock crashing & where will it bottom?

$shop stock shop stock May 08, 2022

Shopify stock, or SHOP stock, has fallen nearly 75% in just the last 6 months! In just the last month it's down nearly 50%! What is going on with Shopify and when will the stock bottom? 

In this video, LINK, I discuss what is Shopify and why their stock has plummeted so dramatically in such a short period. 

The answer, like many crashing stocks, share a few common themes. These themes include:

  • Weaker than Expected Results,
  • Contracting Valuations, and
  • Unprofitable Operations!

Shopify, an ecommerce infrastructure platform for merchants of all size, saw their results accelerate dramatically during the COVID induced lock-downs.  But now, as the economy opens back up and ecommerce normalizes, so has Shopify's results. 

During the 1Q 2021, Shopify's revenue growth ACCELERATED to 110% however during the 1Q 2022 their revenue growth DECELERATED to only 22%. 

While many companies would love to post 22% growth,...

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