Down 74%, Should Smart Investors Buy Shopify Stock During the Bear Market?
The e-commerce industry has been in the worst shambles in recent memory. On one hand, it makes a lot of sense. The pandemic pushed many people -- rather involuntarily -- to resort to online shopping, expediting the secular trend and clouding the overall growth picture.
But now that the global economy has largely reopened, the tables have turned quite a bit. According to U.S. Census data, e-commerce sales represented 14.3% of total retail sales in the first quarter of 2022, down 14.9% from a year ago and marking its second consecutive quarterly decline.
Of course, these latest trends have adversely impacted online shopping-focused businesses like Shopify (NYSE: SHOP), which has watched its stock price plummet 74% year to date. The company, which allows entrepreneurs and businesses to easily build and customize online stores, released its latest earnings report on July 27, providing investors a further sneak peek into the dynamics of the present-day e-commerce arena.
Source Fool.com
