Shopify Inc. (SHOP) stock had been on a bullish roll for almost a week with an uptrend starting on Tuesday culminating in corrections in the after-hours on Friday. Thus, following a week of trending in the green, SHOP succumbed to corrections in the after-hours on March 18, 2022. There is no official announcement from the company to justify the upsurge of the stock although many other factors played a role.
During the regular trading session, the stock added a good 18.65% at an above-average volume of 4.63 million shares. At the closed of the session, SHOP was valued at $780.00 per share with an addition of $122.62. Following this, the stock lost $67.00 or 8.59% in the after-hours under corrections. Hence, the stock was trading at a price of $713.00 per share in the after-hours on Friday.
The cloud-based commerce giant, Shopify Inc. has a market capitalization of $98.24 billion with its 114.01 million shares outstanding.
What is Going on with SHOP?
On March 14, SHOP stock along with other tech stocks like DOCS and DDOG suffered from a downfall. SHOP plunged down to its new 52-week low of $510.02 on March 14. The reason for the downfall of SHOP along with other tech stocks was the dawn of another interest hike from the Federal Reserve. The expected interest rate hike added to the existing market volatility due to numerous factors including the Russia-Ukraine conflict caused investors to back out from many growth stocks.
On March 15, the stock rebounded and entered an uptrend which continued till Friday’s regular session. Many macroeconomic factors along with the dip presenting a good buying opportunity were behind the reversal. Some of the reasons included a new wave of lockdowns due to the resurgence of covid-19 and pull-back in oil prices resulting in reduced shipping costs. The stock enjoyed some good gains for almost a week on the market situation and its recent price dip. Thus, after gaining over 43.28% in the past five days, SHOP ultimately fell under corrections in the after-hours on Friday.
SHOP’s 2021 Financials
On February 16, the company declared its financial results for Q4 2021.
SHOP’s Q4 2021 revenue saw an increase of 41% YOY to $1,380.0 million with adjusted gross profit dollars growth of 37% YOY.
Moreover, the company reported an adjusted net income of $172.8 million or $1.36 per diluted share in the quarter.
Additionally, the company ended the quarter with cash, cash equivalents, and marketable securities of $7.77 billion.
