Shopify is a complete commerce platform for starting, growing and managing a business in the e-commerce sector
As the company states on its website, Shopify unifies all of your commerce onto a single platform.
With Shopify, merchants can build and customize an online store and sell their products in multiple places, including on the website, on mobile devices, in person, in desktop and pop-up stores, and across multiple channels, from social media to online marketplaces. The company is headquartered in Ottawa, Ontario, Canada, and shares are listed on the NYSE.
Staff changes with an impact on Shopify's share price?
Shopify shares rose 3.1 percent Thursday, possibly after the company appointed Jeff Hoffmeister, a managing director at Morgan Stanley, as the company's chief financial officer (CFO), replacing Amy Shapero. Shapero will step down after the company announces its financial results for the third quarter of 2022 on October 27, Bloomberg reported. In addition, the company said that Vice President of Product Kaz Nejatian has been promoted to Chief Operating Officer, effective immediately, replacing Toby Shannan, who is retiring and is expected to join Shopify's board.
According to MacroTrends, Shopify's revenue for the quarter ended June 30, 2022 was $1.295 billion, up 15.69 percent year-on-year. In contrast, Shopify's revenue for the twelve months ended June 30, 2022 was $5.002 billion, up 29.82 percent year-on-year. In contrast, Shopify's operating income for the quarter ended June 30, 2022 was negative at -$0.190 billion, and operating income for the twelve months ended June 30, 2022 was -$0.278 billion.
Shopify's share price tries to bounce off the bottom
As recently as November 2021, the shares were trading above $160, where in early 2019 it was paying $13. The company seemed to gain on a wave of strong demand for e-commerce services during the pandemic, and may now be struggling as the economy returns to a new reality and consumer demand is eroded by rising living costs. Yesterday at the close, the stock price was at $31.93, attempting a comeback from its lowest levels since 2019.
Source: Conotoxia MT5, Shopify.cfd, H1
What does Wall Street say about Shopify's changes?
Bloomberg Agency quotes Wall Street analysts' statements as follows:
Barclays with a $30 price target on Shopify: the news comes as a bit of a surprise. Investors are already struggling with how to think about earnings growth, and the management changes add to that uncertainty.
Citi with a target price of $36: the news is particularly surprising, given that the new CFO's experience "doesn't seem like an obvious choice," but "could point to potentially more M&A and financial discipline in the future."
Baird with a $47 price target: the changes "should not be too disruptive" and reflect "new challenges and opportunities for Shopify, and perhaps the use of other skills in the next stages of growth."
Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Conotoxia investment service)
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.59% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trade this news from Conotoxia Ltd. platforms
Go to your account
