Shopify Stock Plummets After Dismal Earnings Report

SHOP is looking to add to its 65% year-to-dat deficit

Deputy Editor
May 5, 2022 at 9:27 AM
facebook X logo linkedin

The shares of Shopify Inc (NYSE:SHOP) are plummeting this morning, last seen off 14% at $429.19 this morning, after the e-commerce concern posted adjusted first-quarter earnings of 20 cents per share -- well below Wall Street's 64 cent per share estimate. In addition, the firm's revenue fell slightly below expectations, and a cautious outlook was issued as pandemic-related growth takes a hit. In sperate news, the company is set to make its largest-ever acquisitions, buying delivery startup Deliverr in a $2.1 billion deal.

Pacing for its second-worst daily percentage drop of 2022, Shopify stock is set to add to its 65% year-to-date deficit. Since its Nov. 19, all-time high of $1,762.92, SHOP has trended lower, with the 50-day moving average capping more recent rallies.  

Analysts have yet to comment, though the brokerage bunch was split on the stock heading into today. Of the 28 in coverage, 13 considered SHOP a "hold" or worse, while 15 said "buy" or better. What's more, the 12-month consensus target price of $870.38 is a 79.3% premium to last night's close. All of this indicates analysts could hit the stock a round of downgrades and/or price-target cuts in the near future.

Short sellers, meanwhile, have been building their positions. Short interest rose 25.3% in the last two reporting periods, yet it now makes up a slim 3.9% of the equity's available float, or slightly more than one day at its average pace of trading. 

There's been a penchant for bearish bets in the options pits of late. In fact, over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Shopify stock's 10-day put/call volume ratio of 1.01 stands higher than 89% of readings from the last 12 months. This means puts have been picked up at a much quicker-than-usual pace in the last two weeks.




Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI