Why Shopify Stock Fell 16.5% in February
Shares of e-commerce platform company Shopify (NYSE: SHOP) fell 16.5% in February, according to data provided by S&P Global Market Intelligence. Nearly all of the drop happened immediately after the company reported financial results, which is odd considering results beat expectations, and Wall Street generally upgraded its outlook for the stock.
On Feb. 15, Shopify announced financial results for the fourth quarter of 2022. The company reported Q4 revenue of $1.7 billion, whereas the analyst community had only expected revenue of $1.65 billion on average, according to The Fly. Q4 revenue was up 26% year over year, which is still strong considering how much growth it's experienced in recent years.
Wall Street largely praised Shopify's Q4 results, which is surprising considering the negative reaction from the market. Piper Sandler analyst Brent Bracelin cited the company's strong revenue growth when raising his price target from $36 per share to $45 per share. And Credit Suisse analyst Timothy Chiodo referenced its improving profitability as reason for optimism when raising his price target from $34 per share to $40 per share.
Source Fool.com
