Shopify shares fell sharply after the company guided for slower revenue growth despite reporting 34% year-over-year gains.
Shopify Inc. (NASDAQ:SHOP) reported 34% revenue growth in its latest quarter but warned future expansion may slow to the high 20s. The guidance triggered a sell-off, pushing shares down from $182 in October to $105 today.
Prior to the earnings release, Shopify had been a high-flying stock, benefiting from its dominance in e-commerce platforms for small and medium-sized businesses. Analysts had anticipated continued strong performance, but the revised outlook tempered expectations.
The stock’s decline reflects investor concerns over decelerating growth, though some market participants view the pullback as a buying opportunity given Shopify’s long-term position in digital commerce.