May 8, 2024 - Business

Charted: Shopify shock

A line chart that displays the daily Shopify stock price from January 2 to May 8, 2024. The price fluctuates between a low of $62.73 on May 8, 2024 as the stock fell 18.6%, and a high of $90.72 on February 9, 2024. The chart shows a general downward trend from February to May, with several peaks and valleys.
Data: Yahoo Finance; Chart: Axios Visuals

Shopify, the e-commerce logistics company, shocked investors today with its sales forecast.

By the numbers: While sales growth reached 23% in the first quarter, Shopify says it expects its Q2 growth rate to fall to the high teens.

  • The stock plummeted more than 21% earlier in the day and closed down 18.6%.

💭 Hope's thought bubble: As consumers continue to battle inflation and budget for events and travel, Shopify's double-digit growth rate — in its 18th year of operation — speaks to how strong demand for goods continues to be.

  • And the sell-off, especially in the context of the company's near 50% margins, shows how sensitive and unforgiving financial models are to changing winds.

This story was an excerpt from Axios Closer, a recap on the day's biggest business stories.

Read the full edition