Shopify's Losses in 2022 Aren't What They Appear to Be
2022 has been a rough year for e-commerce software giant Shopify (NYSE: SHOP), and the second-quarter earnings update brought little reprieve. Slowing revenue growth (up 16% year over year) was a problem. But the spotlight was turned on the bottom line in particular. Net losses tallied up to $2.68 billion through the first half of the year, compared to net income of $2.14 billion during the same period a year ago. Ouch!
But not so fast. Those net losses (and the net gains from last year, for that matter) aren't exactly what they appear to be. Shopify is indeed losing cash this year, but not nearly at the rate indicated by the "net loss" line item. Here's what's going on.
Have your tech stocks been blown up by the bear market this year? If so, you're in the same boat as Shopify. Same as last quarter, the majority of Shopify's net losses in Q2 were attributable to its equity investments.
Source Fool.com
