Shopify Stock: Shopify Earnings Top Views. E-Commerce Giant Plunges On Outlook

Shopify reported first-quarter earnings that exceeded expectations, with a 20 cents adjusted EPS against an estimated 16 cents, and a 23% revenue increase to $1.9 billion. Despite this, Shopify stock plummeted due to disappointing revenue and profit margin guidance for the upcoming quarter.

The company anticipates revenue growth in the high teens percentage range year-over-year for the June quarter, adjusting for the impact from the sale of its logistics businesses. However, a projected decrease in gross margin and concerns about operating expenses have negatively impacted investor sentiment, leading to a significant drop in Shopify's stock value.