Much of Shopify's revenue is tied to the health of its merchant customers' businesses. E-commerce sales have already slowed down since governments in most countries have eased COVID restrictions and people have generally resumed shopping at traditional retail stores. Inflation, which has driven many people to cut back on their discretionary purchases, has also dented online retail sales.
If FedEx's forecast proves true and deteriorating economic conditions further weaken consumers' buying power, more pain could lie ahead for Shopify's merchants -- and its shareholders.$Shopify(SHOP)$
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments