Shopify drops again after warning of weak outlook, bigger losses

Shopify said it expects operating losses in the third and fourth quarters will exceed those of the second quarter, when it lost US$190 million on an operating basis. The company is cutting aboutThe stock was down 1.4 per cent to US$31.10 as of 9:09 a.m. in New York after earlier dropping about eight per cent.

“We now expect 2022 will end up being different, more of a transition year, in which e-commerce has largely reset to the pre-COVID trend line and is now pressured by persistent high inflation,” the Ottawa-based company said in a statement Wednesday morning. The dour outlook and the job reductions came with an admission from chief executive Tobi Lütke that executives had misjudged the durability of the pandemic-related boom in online sales and that company’s rapid expansion was unsustainable.Article content

“Ultimately, placing this bet was my call to make and I got this wrong. Now, we have to adjust,” Lütke said in a memo to employees. “As a consequence, we have to say goodbye to some of you today and I’m deeply sorry for that.”

Shopify up 11% today. OC posting old news again to stay relevant on Twitter.

Mmm, stock up 12% today. Old news.

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