Canadian eCommerce platform Shopify has been taking investors on quite the roller coaster ride lately, with its stock price dropping from a high of $1,690 in November to just over $510 in mid-March.
The stock surged to $780 by Friday (March 18) but looks to be slumping again early Monday (March 21), losing more than 3% in early morning trading.
Shopify’s stock succumbed to an after-market correction Friday after a week on the upswing, although officials haven’t yet talked about what led to the upsurge and why they think there was a correction heading into the weekend.
“The reason for the downfall of SHOP along with other tech stocks was the dawn of another interest hike from the Federal Reserve,” according to a Stocks Telegraph report Monday. “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.”
The report stated Shopify’s stock “enjoyed some good gains for almost a week on the market situation and its recent price dip,” which it blamed on another wave of lockdowns related to the pandemic and the recent interest rate hike by the Federal Reserve.
In February, Shopify announced that its platform topped $6.3 billion in sales from the start of Black Friday in New Zealand through the end of Cyber Monday in California, up from $5.1 billion in 2020, according to the company’s quarterly and annual earnings report.
Read more: Holiday Shoppers, Subscribers Boost Shopify 2021 Q4, Yearly Numbers
The even better news for the environmentally conscious among Shopify’s customer base is that the company bought enough carbon removal to “completely eliminate the impact of carbon emissions from shipping on every single order on our platform” for that weekend.
Subscriptions to the Shopify platform were up 26% year over year to $351.2 million, thanks in large part to more merchants joining the platform.
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