Why Shopify Stock Is Sliding Today

Shares of e-commerce platform Shopify Inc SHOP are trading lower Thursday after the company reported fourth-quarter results and provided a disappointing outlook. 

What Happened: Shopify reported a 26% year-over-year increase in fourth-quarter revenue, which came in at $1.73 billion, beating average analyst estimates of $1.65 billion, according to Benzinga Pro. The company reported fourth-quarter earnings of 7 cents per share, which topped estimates for a loss of 1 cent per share.

Gross margins came in at 46% compared to 50.2% in the prior year's quarter.

"The strength of our Q4 and full year performance in 2022 is a testament to the resilience of our merchants. Despite persistent macroeconomic challenges, they continued to succeed on Shopify, growing sales and using more of our mission-critical tools to run their businesses," said Harley Finkelstein, president of Shopify.

Shopify expects first-quarter revenue growth to be in the high-teen percentage range, down from 26% growth in the fourth quarter. Operating expenses are expected to be up in the low-single-digit percentage range. Gross margins are expected to tick slightly higher compared to the fourth quarter.

Check This Out: Shopify Q4 Earnings Highlights: Revenue And EPS Beats, GMV Up 13%, Q1 Guidance And More

SHOP Price Action: Shopify has a 52-week high of $78 and a 52-week low of $23.63.

Shopify shares are down 9.63% at $48.25 at publication time, according to Benzinga Pro.

Photo: Roberto Cortese from Unsplash.