Shopify Stock Tumbles After Q4 Performance - Here's Why
Portfolio Pulse from Anusuya Lahiri
Shopify Inc (NYSE:SHOP) stock fell after reporting Q4 results with a 24% revenue growth to $2.14 billion, surpassing estimates. Adjusted EPS was $0.34, beating forecasts. Gross merchandise volume and merchant solutions revenue also saw increases. The gross margin improved to 49.5%, and free cash flow surged to $446 million. Despite these positive results, the stock dropped 13% in premarket trading. For Q1, Shopify anticipates revenue growth in the low-twenties percentage and a higher gross margin.
February 13, 2024 | 2:28 pm
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Shopify reported strong Q4 results, including a 24% revenue growth to $2.14 billion, beating estimates, and an adjusted EPS of $0.34. Despite positive performance and an optimistic Q1 outlook, the stock fell 13% in premarket trading.
Despite Shopify's strong Q4 performance and positive outlook for Q1, the stock's premarket drop suggests investor concerns or profit-taking. The significant premarket decline indicates a short-term negative impact on the stock price, possibly due to market expectations being higher than the reported results or broader market conditions.
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