Shopify‘s stock took a dip as the curtains closed on February 13, 2024, following the release of their Q4 financial results and accompanying guidance. The figures unveiled a commendable 26% surge in revenue, surpassing expectations, while their gross merchandise volume from merchant transactions experienced a notable 23% upswing. Buoyed by these impressive numbers, the company’s Q1 guidance painted a promising picture, projecting a year-on-year boost in both merchant solutions and subscription.
However, despite these encouraging financial indicators, Shopify’s shares stumbled and tumbled by over 8% in the wake of their earnings report. The market seemed to react unexpectedly, casting a momentary shadow over the otherwise bright future that lay ahead for the e-commerce giant.
Updated on: 03/03/2024
Debt to equity ratio: Neutral
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
ROE: Strong Buy
2:00 AM (UTC)
Date:21 January, 2024
|Analyst / firm
Shopify Inc. (SHOP) Stock Price Drops on February 13, 2024: Investors Monitor for Potential Trend Reversal
On February 13, 2024, Shopify Inc. (SHOP) experienced a significant drop in its stock price. The stock opened at $77.89, which was $11.23 lower than its previous close, representing a decrease of 7.59% in SHOP shares since the market last closed. Despite this drop, SHOP has been performing well overall, trading near the top of its 52-week range and above its 200-day simple moving average. However, the price drop on February 13th raises concerns among investors, who will closely monitor the stock’s performance in the coming days to assess whether this drop is temporary or the beginning of a more significant downward trend. It is important to consider broader market conditions and factors that may have influenced SHOP’s stock performance on February 13th, such as company news, industry trends, or general market volatility. Investors should exercise caution and conduct thorough research before making any investment decisions regarding SHOP stock.
Shopify Stock Performance: Mixed Results in Revenue and Net Income, Concerns Over Declining EPS
SHOP stock performances on February 13, 2024, showed mixed results based on the financial data provided. Despite an increase in total revenue and net income since the previous quarter, the stock’s earnings per share (EPS) experienced a significant decrease over the past year.
According to data sourced from CNN Money, Shopify’s total revenue for the past year stood at $5.60 billion, representing a 21.42% increase compared to the previous year. However, the total revenue remained flat since the last quarter, indicating a potential slowdown in growth.
The net income for the past year was reported as -$3.46 billion, reflecting a significant loss. However, in the third quarter, the net income showed a positive turnaround, reaching $718 million, a substantial increase of 154.77% compared to the previous quarter.
Despite the improvement in net income, the earnings per share (EPS) for Shopify stock experienced a significant decline over the past year. With an EPS of -$2.73, the company’s profitability per share decreased by 219.42% compared to the previous year. However, the EPS increased by 154.12% since the last quarter, reaching $0.55.
These financial indicators suggest that Shopify experienced a challenging year in terms of profitability, as evidenced by the negative net income and declining EPS. However, the positive turnaround in net income during the third quarter indicates potential improvements in the company’s financial performance.
Investors and analysts would closely monitor these figures to assess the company’s ability to sustain growth and generate profits in the future. While the increase in total revenue is a positive sign, the decline in EPS raises concerns about the company’s overall profitability.
It is important to note that stock performances are influenced by various factors, including market conditions, competition, and company-specific developments. Therefore, it is crucial to consider these factors in addition to the financial data when analyzing the stock’s performance.
Overall, the SHOP stock performances on February 13, 2024, showcased a mixed picture for Shopify. While the company experienced growth in total revenue and net income since the previous quarter, the declining EPS over the past year indicates potential challenges in maintaining profitability. Investors and analysts would closely monitor these figures to assess the company’s future prospects and make informed investment decisions.