Shopify: Encouraging Signs, But A Tough 2H Ahead
- Shopify reported a mixed quarter with solid revenue growth, but the company missed analyst estimates.
- The e-commerce platform completed a 10% staff reduction but still plans to grow employees for the year.
- The company forecasts more operating losses in the 2H of the year, highlighting how the business was mismanaged following a period of strong growth.
- The stock isn't appealing at 6x sales with large operating losses, but Shopify appears to have bottomed at $30.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
How a stock trades after disappointing results is just as important as the actual results in the short term. Shopify () has had a bad week with discussions of major layoffs and a big Q2'22 earnings missinvestment thesis
Read the full article on Seeking Alpha.
Disclosure: No position mentioned. Please review the disclaimer page for more details.