Shopify shares fall as much as 13% after it suspends 2020 guidance due to coronavirus disruptions

- Advertisement -
  • Shopify suspended its full year 2020 guidance due to growing disruptions from the coronavirus pandemic.
  • It had predicted 2020 revenue to range from $2.13 billion to $2.16 billion, compared with consensus estimates of $2.11 billion.
  • The company said it still expects first quarter revenue to be in-line with expectations.
- Advertisement -
- Advertisement -
- Advertisement -
CNBC: Harley Finkelstein, COO, Shopify 200212
Harley Finkelstein, COO, Shopify
Scott Mlyn | CNBC

Shopify suspended its full year 2020 guidance due to growing disruptions from the coronavirus pandemic, but said it expects first quarter revenue to be in-line with expectations. Shares of Shopify plunged 13% on Thursday morning.

“Given the uncertainty surrounding the duration and magnitude of COVID-19, Shopify is suspending the financial expectations provided for full year 2020,” the company said late Wednesday in a press release.

“Shopify ended 2019 with momentum that continued into January and February of 2020. This will enable us to report revenue and adjusted operating income for the first quarter within or ahead of the range of expectations provided on February 12, 2020, despite the global economic disruption that emerged in March triggered by COVID-19,” it said.

On February 12, Shopify reported better-than-expected fourth-quarter results and subsequently gave fiscal 2020 guidance of between $2.13 billion and $2.16 billion, topping analysts’ expectations at the time. It reached a 52-week high of $786.07 on February 12. It was trading below $500 on Thursday.

The company, which makes online tools for other companies to sell products online, is set to announce results from its fiscal first quarter on May 6.

Home of Science
Follow me

- Advertisement -




Andy Zaltzman column: Jonny Bairstow breaks new ground with Sydney centuryon January 11, 2022 at 8:29 am

Andy Zaltzman digs out the eye-catching stats from the gripping draw between England and Australia in the fourth Test in Sydney.

COP27: King Charles hosts meeting ahead of climate summiton November 4, 2022 at 2:37 pm

The King will not be attending the UN climate summit COP27 which starts on Sunday.Image source, PA MediaBy Georgina RannardBBC News Climate & ScienceKing...

Nothing in data to support new curbs in England – ministerson January 2, 2022 at 6:34 pm

But a senior doctor urges action to bring case numbers down as hospitals cope with staff absences.Image source, Getty ImagesThere is nothing in the...

Mesothelioma Causes and Symptoms

What causes mesothelioma? It is generally accepted that the most likely cause of mesothelioma is exposure to asbestos. Research indicates that about 15% of...

Tax U-turn lifts pound as borrowing costs fallon October 3, 2022 at 1:17 pm

Chancellor Kwasi Kwarteng remains under pressure to detail how he will pay for wider tax cuts.Image source, Getty ImagesThe pound has climbed after the...
Home of Science
Follow me