Shopify Share Price Prediction in Deliverr Acquisition
Shopify (NYSE:SHOP) stock price tumbled after the company reported weak results. Shares are trading at their lowest level since 2020, meaning they are down more than 77% from their all-time high. Its market cap has fallen to just $54 billion.
Shopify Revenue Review
Shopify is one of the largest e-commerce companies in the world. The company provides tools that allow users to build their online stores without any coding.
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Shopify, which is one of the companies in the Ark Innovation Fund, has had a strong performance during the pandemic. This happened as the number of people creating online stores and those buying from e-commerce stores increased.
As a result, Shopify’s stock price hit an all-time high of $1,823, valuing it at over $100 billion. Now, with the global economy reopening, investors have dumped stuck stocks as growth slows.
In a statement, Shopify said total revenue rose 22% in the first quarter to $1.2 billion. This is the highest quarterly turnover ever recorded. Its monthly recurring revenue reached $105.2 million from $89 million previously. Subscription revenue increased 8% to $344.8 million, while total gross merchandise volume (GMV) reached over $43.2 billion.
Shopify’s stock price also fell after the company expanded its logistics business. In a statement, the company agreed to pay $2.1 billion to buy Deliverr, a company that provides fulfillment solutions. The company will be financed 80% in cash and the rest in shares.
Like Amazon, the company is struggling as inflation continues to rise. Recent data showed that the overall consumer price index (CPI) increased by 8% in the United States. The company also faces challenges as logistical challenges continue.
Shopify stock price prediction
SHOP’s stock price fell sharply after the company reported weak results. It will open at $423, which is slightly above its lowest level this year. Stocks fell below the 25- and 50-day moving averages. It is also below the important support level at $514, which was the lowest level on March 15th.
Therefore, it looks like the bears are under control, which will cause the stock to fall sharply in the coming weeks. As such, a drop below the support level at $400 cannot be ruled out.
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