Why Shopify Stock Fell 11% in September
Shares of e-commerce giant Shopify (NYSE: SHOP) dropped by 11% in September, according to data provided by S&P Global Market Intelligence. That was a continuation of a downward trend that began in July, when Shopify shares hit a record peak and were trading at sky-high valuations. There was no bad news for the company -- indeed, it recently announced some positive developments. Nonetheless, investors seemed to think it was too highly valued.
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Shopify has posted phenomenal growth for years, and that continued with the second-quarter report it delivered in July. Sales increased 57% year over year to top $1 billion for the first time, gross merchandise volume increased 40% year over year for a record $42 billion, and net income zoomed up by more than 2,000% from $36 million to $879 million. Still, the stock began to slip that month.
Source Fool.com
