Shopify (SHOP.US) stock fell more than 5% in premarket on Wednesday despite the fact that the Canadian e-commerce giant posted better than expected Q4 figures. Nevertheless weak guidance for the full fiscal year weighed on sentiment.
- Earnings came in at $1.36 cents per share on an adjusted basis, down 14% from the year-earlier period, however above analysts’ estimates of $1.30 a share.
- Revenue of $1.38 billion, beat market estimates of $1.33 billion according to Refinitiv data. This is a significant improvement compared with $977.7 million a year earlier.
- Gross merchandise volume from merchant customers jumped 31% to $54.1 billion compared with Wall Street expectations of $53.03 billion.
- Merchant solutions revenue surged 47% to $1.03 billion vs expected $985 million.
- Subscription solutions revenue increased 26% to $351.2 million, below analysts’ projections of $357 million.
- For full-year 2022, the company expects "Year-over-year revenue growth to be lower in the first quarter of 2022 and highest in the fourth quarter of 2022." "We do not expect the COVID-triggered acceleration of ecommerce in the first half of 2021 from lockdowns and government stimulus to repeat in the first half of 2022".
Shopify (SHOP.US) stock fell sharply before the opening bell and is currently testing a major support zone around $845.00 which is marked with 61.8% Fibonacci retracement of the upward wave launched back in March 2020 and lower limit of the triangle formation. Should break lower occur, downward move may accelerate towards support at $612.45. On the other hand, if buyers manage to regain control and break out of the aforementioned formation, then resistance at $1010.00 may be at risk. This level is marked with an upper limit of the 1:1 structure. Source: xStation5
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