Why Shopify Stock Fell 17% in June
Shares of e-commerce giant Shopify (NYSE: SHOP) stock fell yet again in June, another 17%, according to data provided by S&P Global Market Intelligence. The website provider is dealing with cutbacks in retail spending as well as the overall uncertain economic outlook. The stock price enjoyed a small uptick before it split on June 29 and began to creep back down again.
Shopify makes shopping solutions, and if people aren't shopping, that's bad news for the company. As inflation persists and gets worse, consumers begin to pull back on spending, especially discretionary spending.
That's already showing up in Shopify's slowing sales. Revenue increased 22% in the 2022 first quarter, after a 110% jump last year, a company record. It's not surprising that accelerated growth is coming to an end, both because of stimulus payments and stay-at-home orders last year, combined with near-term pressure this year.
Source Fool.com
