Shopify gains as investors buy dip after surprise Q2 loss

Shoppers Stop

27/07/2022 16:05

** Canadian ecommerce firm Shopify Inc's U.S.-listed shares
 SHOP.N  jump ~6% to $33.50, snapping a three-session losing
streak
    ** Co reports a surprise loss for Q2 and warns of an
adjusted operating loss for H2, citing higher expenses related
to ecommerce fulfillment co Deliverr  urn:newsml:reuters.com:*:nL4N2Z82IA
    ** "Shopify is working on their business going forward to
correct the mistakes they made, which is thinking they could
expand quickly based on the past couple of years because of the
pandemic," said Allan Small, senior investment advisor at Allan
Small Financial Group    
    ** Shares tanked 14% on Tuesday after the co announced
layoffs  urn:newsml:reuters.com:*:nL4N2Z72VQ
    ** Investors are at a point where even though disappointing
news is there, they will look at buying because they are
starting to feel that the stocks are already near some bottom -
Small 
    ** Stock is up amid a broader rally in tech shares; Nasdaq
 .IXIC  up 2%
    ** During the pandemic we made this bet that retail spend
would disproportionately favor e-commerce... and we overshot
that prediction and we are recalibrating - SHOP President Harley
Finkelstein said in an interview
    ** We are conducting far more rigorous review of our
operations and our teams, Finkelstein said  urn:newsml:reuters.com:*:nL4N2Z82IA
    ** SHOP shares have slumped ~76% this year
    
    

 (Reporting by Anisha Sircar and Johann M Cherian)
 ((susan.mathew@thomsonreuters.com))