Shopify Shares Down 20% in the Last Two Days on Disappointing Q1 Results
<p><a href='https://financialmodelingprep.com/financial-summary/SHOP'>Shopify Inc. (NYSE:SHOP) </a>shares lost more than 20% since Wednesday's close on disappointing Q1 results, with EPS of $0.20 coming in worse than the Street estimate of $1.00. Revenue was $1.2 billion, missing the Street estimate of $1.6 billion.</p>
<p>Quarterly GMV and MRR both missed consensus estimates, and commentary indicates tougher compares and a shift from goods to services will remain headwinds into Q2 and beyond, thus driving 2022 estimates lower.  Furthermore, accelerating S&M investments against a slowing merchant backdrop, along with a recommitment to invest all gross profit back into the business, raises questions on unit economics, particularly as margins broadly come more into focus for investors.</p>
<p>The company also announced the acquisition of asset-light 4PL Deliverr for $2.1 billion for 80% cash and 20% stock, in order to help accelerate the timeline to scale Shopify Fulfillment Network.</p>
<p>According to the analyst at Deutsche Bank, this acquisition helps Shopify better compete with Amazon's Buy with Prime, by offering 'Shop Promise' 2-day or next-day delivery, as well as potentially limits the longer-term Capex-heavy investment cycle, given Deliverr's success in leveraging 3PL partners.</p>

NYSE:SHOP