Shopify shares sink as e-commerce platform forecasts downbeat quarterly revenue growth

forecast its slowest quarterly revenue growth in two years against the backdrop of an uncertain economy and tepid consumer spending, sending its U.S. shares slumping 16.5 per cent in premarket trading.

While e-commerce growth has been normalizing after a post-pandemic slump, consumers have been looking to cut down on costs, putting Shopify at a disadvantage despite price hikes and new AI-based tools. Adding to the company’s pressure, its core clientele is made up of small and medium-sized businesses that have been more susceptible to the hit from sticky inflation.

The company said on Wednesday it expected second-quarter revenue to grow at a high-teens percentage, disappointing investors who had seen average growth of about 26 per cent over the past few quarters.The company expects operating expenses to be up at a low-to-mid-single digit percentage rate for the second quarter, compared with a 4 per cent fall in the first three months of the year.Shopify reported first-quarter revenue of $1.86-billion, compared with analysts’ average estimate of $1.

Cent Revenue Company Shopify Growth Economy Backdrop Trading Shopify U.S.

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Watchdog agency accuses chief of military police of blocking investigationsFile - A Canadian flag badge is displayed on the uniform of a Canadian Armed Forces soldier.
Source: CBCNews - 🏆 2. / 99 Read more »

Climate changing what’s growing on Canadian farms, eaten on Canadian tablesFrom saffron to bananas, Canada’s food growers are considering their options
Source: TerraceStandard - 🏆 24. / 68 Read more »

Pressure is all on Pacific FC says TSS Rovers coachCanadian Championship opening-round game goes Wednesday night at Starlight Stadium
Source: timescolonist - 🏆 15. / 75 Read more »

Melvin steps up for Pacific FC to record clean sheet in draw against CavalryNext up for PFC is Canadian Championship game Wednesday against Rovers
Source: timescolonist - 🏆 15. / 75 Read more »

E-commerce company Shopify reports Q1 loss, revenue up 23% from year agoOTTAWA — Shopify Inc. reported a loss in its latest quarter as its revenue increased 23 per cent compared with a year ago. The e-commerce software company, which keeps its books in U.S.
Source: SooToday - 🏆 8. / 85 Read more »

Shopify Tumbles as Margins Fall After Sale of Logistics BusinessShopify Inc. shares tumbled after the Canadian e-commerce company said gross margins would decrease in the current quarter as a result of the sale of its logistics business.
Source: BNNBloomberg - 🏆 83. / 50 Read more »