How Profitable Is Shopify Exactly After Accounting for Stock-Based Compensation?
After years of rapid expansion, the jury is now out on Shopify (NYSE: SHOP) stock. The e-commerce software giant is making a push into new areas to advance digital commerce for small businesses and entrepreneurs, but that's costing a lot of money -- not to mention diluting existing shareholders with stock-based compensation. Amidst the mess, Wall Street has punished this former market darling. Shares are down more than 80% from all-time highs reached in late 2021.
But how profitable is Shopify exactly? And is there an effective way to track its progress in delivering returns to investors? Yes, there is. Let's dig in.
The last I wrote about Shopify following the second-quarter report, I discussed what accounted for the company's massive $2.68 billion net loss (using GAAP, or generally accepted accounting principles) through the first half of 2022. In a nutshell, the problem is the company's investments in Affirm Holdings and Global-E Online, which have both taken a hit and reversed their massive gains from 2021.
Source Fool.com
