Shopify’s (SHOP) stock is down 10% after the Canadian e-commerce company issued forward guidance that was weaker than analysts had expected.
The Ottawa-based company said it expects revenue growth this year in the “high teen percentages,” which was below the 20% year-over-year growth that analysts had penciled in for Shopify.
The company, which provides software and online services that support small businesses, managed to beat forecasts regarding its latest earnings. Shopify reported fourth quarter revenue of $1.73 billion U.S., which was better than the $1.65 billion U.S. expected on Wall Street.
The company said its Black Friday sales rose 19% from 2021 levels to reach a record $7.5 billion U.S. Shopify reported earnings of $0.07 U.S. per share compared with forecasts of a $0.02 U.S. loss.
Shopify cut 1,000 jobs last July and has since introduced new measures to improve services for its customers. The company also recently rolled out new marketing, sales, and hardware tools to help merchants attract more buyers.
Prior to the latest decline, Shopify’s stock had been down about 25% over the last 12 months and trading at $71.44 per share.
