Shopify stock is brushing off a fourth-quarter earnings and revenue beat after indicating that revenue growth in 2021 could "normalize"
The shares of Shopify Inc (NYSE:SHOP) are off 7.8% at $1,354 this morning, after the company posted its fourth-quarter earnings, which included a 94% jump in revenue to $977.7 million, beating Wall Street's estimates. The firm's earnings also topped estimates, while it said it expects a return to "normalized" growth this year.
Despite this, SHOP is dropping from yesterday's all-time closing high of $1,474 -- just within a chip shot of its $1,499.75 record peak, touched on Feb. 10. Digging deeper, the equity's relative strength index (RSI) of 74 sits just on the cusp of "overbought" territory, suggesting a short-term pullback could be on the horizon. Despite today's drop however, the e-tail concern is still up nearly 177% in the past 12 months.
Analysts have yet to comment on Shopify's earnings beat, though coming into today, the brokerage bunch was split on the stock. Of the 25 in coverage, 14 considered SHOP a "strong buy" and 11 said "hold" or worse.
Short sellers, meanwhile, have been hitting the exits. Short interest dropped nearly 15% in the last reporting period, and now makes up just 1.1% of the equity's available float, or less than one day at its average pace of trading.