(NYSE: SHOP) stock declined significantly this week. Shares dropped 16% through Thursday trading as compared to a 1.5% rally in the wider market, according to data provided by S&P Global Market Intelligence. That slump added to a tough year so far for owners of the e-commerce infrastructure platform, which is down 20% in 2024, while the S 500 has risen 9%.

This week's decline occurred after Shopify failed to meet high expectations around its Q1 earnings release.

The business is still doing well, to be sure. Sales volumes jumped 29% after accounting for the recent sale of the logistics business. Shopify remained profitable on an adjusted earnings basis and, in fact, boosted its gross profit margin to 51% of sales from 48% of sales a year ago. Cash flow improved to 12% of sales from 6% a year earlier, which is a strong marker for any software-as-a-service business.

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Source Fool.com