May 8th, 2024 – Today, Shopify (SHOP) (-19.3% at 10:35 AM EDT), a notorious Canadian e-commerce firm operating in multiple countries, disclosed its expectations about quarterly revenue growth and the forecasted values are the worst in the last two years. Among the several factors that led to this poor result are the decreasing consumers’ spending trend in recent times as well as the fact that the core of Shopify’s clientele represented by small and medium-sized companies has been heavily hit by the ongoing inflation. The company’s forecast for the second quarter of 2024 did not meet Shopify’s investors’ expectations at all, considering that the latter experienced an average revenue growth of 26% in the last quarters (with respect to this, LSEG data drove analysts to predict a growth rate of 19.35% for the ongoing quarter) and, in addition to this, operating costs will probably go up in Q2, while a 4% fall was registered during the first three months of 2024.
Another company that performed very badly on the market today after negative results were disclosed is Uber (UBER), with its stock price plummeting by nearly 6% at 10:03 AM EDT. What impacted the company’s market trend is not only the loss of $0.32 per share in 2024 Q1, but also a huge discrepancy between the disclosed revenue from Q1 reservations and the expected one. Market operators estimated a profit per share of $0.22 together with a revenue from reservations around $37.97 billion and both of these values were far higher than the ones reported by Uber. By the way, the near future does not seem to be so positive for the latter, considering that the company had to revise downwards the expected gross revenue for the second quarter. Now, it forecasts around $39 billion more or less, while analysts previously agreed on a value of $40.04 billion.
Author: Piero Foberti.