SHOP Stock: E-commerce company reports revenue loss and losses

E-commerce company Shopify reported a loss for the June quarter on Wednesday, as revenue and gross merchandise volume missed estimates. SHOP’s stock faltered at the open after being beaten in recent sessions.


Based in Canada Shopify (SHOP) announced its second quarter results before the market opened. SHOP stock oscillated between positive and negative ground in the stock market today.

For the quarter ending June 30, Shopify said it lost 3 cents per share on an adjusted basis.

SHOP stock revenue rose 16% to $1.295 billion, the company said. Revenue growth slowed for a fifth straight quarter as the coronavirus pandemic wanes and online shopping normalizes.

Shopify Stock: Shedding Light on Gross Merchandise Volume

Analysts had expected Shopify to earn 3 cents per share on revenue of $1.33 billion. A year earlier, Shopify earned 22 cents per share on revenue of $1.12 million.

Merchant customer gross merchandise volume was $46.9 billion versus estimates of $48.84 billion.

“Second-quarter results showed trends deteriorating even faster than expected,” Jefferies analyst Samad Samana said in a note to clients. “GMV of $46.9 billion missed estimates resulting in total revenue shortfall. Missed profitability due to revenue shortfall and high expenses.”

SHOP stock fell 14% on Tuesday. Shopify’s inventory is down nearly 80% in 2022.

Sales of merchant solutions up 18%

In the June quarter, Shopify said merchant solutions revenue grew 18% to $929 million. Subscription Solutions revenue increased 10% to $366.4 million. Analysts had forecast merchant solutions revenue of $968.2 million and subscription solutions revenue of $361.6 million.

Shopify sets up e-commerce websites for small businesses and partners with others to handle digital payments and shipping.

The e-commerce company announced on Tuesday that it would cut about 1,000 workers, or 10% of its workforce.

If you are new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one of the keys to investing guidelines.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.


Bear market news and how to handle a market correction

How to use the 10 week moving average to buy and sell