Shopify Stock: Is It a Buy, Sell, or Hold?
Shopify (NYSE: SHOP) has experienced a wild ride this week. A resetting of expectations led to massive selling in Shopify, but it reversed course after the company announced its second-quarter earnings.
Still, with the stock losing about 80% of its value this year, this mixed news may leave investors wondering what to do. While anything can happen to Shopify stock in the near term, investors need to take a closer look at both its fundamentals and competitive standing.
Two days before its earnings announcement, Shopify issued a press release describing changes to its team. In the report, CEO Tobi Lütke took responsibility for misjudging how e-commerce would change amid the pandemic. During the contagion, he forecast that e-commerce would "permanently leap ahead by five to 10 years." Nonetheless, that leap was temporary, and amid a reversal, Lütke announced Shopify would return to its pre-pandemic growth projections and lay off 10% of its employees.
Source Fool.com
