Shopify Stock Rally Snuffed Out On Weak 2023 Revenue Outlook

E-commerce firm Shopify (SHOP) on Wednesday reported earnings and revenue for the fourth quarter that topped analyst estimates. But Shopify stock fell as the company’s 2023 revenue outlook fell short of expectations.

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In the fourth quarter ended Dec. 31, Canada-based Shopify said it earned 7 cents per share on an adjusted basis, down 50% from a year earlier. Revenue for Shopify stock rose 26% to $1.7 billion, the company said.

Analysts expected the Shopify earnings report to record a loss of 1 cent on revenue of $1.65 billion. A year earlier, Shopify earned 14 cents per share on revenue of $1.38 billion.

Shopify stock fell 6.6% to 49.88 in extended trading on the stock market today. In Wednesday’s regular session, shares rose 6.5%.

Shopify Stock: ‘High Teens’ Revenue Growth

For full-year 2023, the company predicted “high teens” revenue growth. Analysts had projected more than 20% revenue growth.

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

After plunging in 2022, Shopify stock had advanced 44% this year.

Shopify in January hiked contract prices for merchants.

The company is building a U.S. distribution network to store and ship products for its merchant customers.

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

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