Friday’s Headlines: Shopify Drags the Market Down

Friday’s Headlines: Shopify Drags the Market Down

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Tripadvisor (TRIP) +5.1%

Booking Holdings (BKNG) +3.3%

Twitter (TWTR) +2.6%

Activision Blizzard (ATVI) -0.6%

Constellation Brands (STZ) -0.7%

Moving Down ⬇️

Hain Celestial (HAIN) -21.0%

Etsy (ETSY) -16.8%

Shopify (SHOP) -14.9%

Cloudflare (NET) -13.9% (BILL) -13.2%

1. Shares in e-commerce giant Shopify (SHOP) tumbled yesterday following the announcement of its first-quarter 2022 earnings. Shopify posted adjusted earnings per share (EPS) of $0.20 on revenue of $120 billion. Analysts had expected figures of $0.64 and $1.24 billion respectively. This costly miss resulted in the company’s stock dropping by close to 15%. A first-quarter net loss of $1.5 billion can largely be attributed to both realized and unrealized losses on equity and other investments totaling $1.6 billion. According to our analyst, Mike, “This is far and away from the core business and so we can discount the huge loss figure.” To hear what else Mike had to say on the matter, click here to read his reaction to yesterday’s eventful earnings call.

2. Hain Celestial (HAIN) lost over 20% yesterday after failing to meet expectations for earnings and revenue in its fiscal Q3 2022 call. The American food company posted adjusted EPS of $0.33 against estimates of $0.46, on revenue of $502.94 million versus predictions of $526.53 million. Much of these underwhelming results were blamed on labor disruptions, along with supply chain and inflationary challenges currently being experienced by the company. The poor earnings call saw Hain slide to a 52-week low yesterday with the firm now down over 37% year-to-date. Despite this, President and CEO Mark L. Schiller stated that “we are pleased to see underlying strength in our brands and accelerating topline growth in Q3” before continuing by expressing, “the team remains confident in our Hain 3.0 strategy and laser-focused on delivering accelerating top-line and long-term profitable growth.” Read more here.

3. Cloud-computing company Cloudflare (NET) saw its shares sink by almost 14% yesterday following its first-quarter earnings report. The stock is continuing to slide in pre-market trading today following weak guidance for the current quarter. The company managed to beat Q1 expectations, posting adjusted EPS of $0.01 against a breakeven estimate, on revenue of $212.2 million against a predicted $205.8 million. The company forecasted a possible loss for Q2, with earnings estimates on the low end expecting a loss of $0.01 per share. Analysts had been expecting the firm to at the very least break even, prompting shareholders to seemingly panic sell. Earnings guidance for the full year didn’t change, with EPS of $0.03 to $0.04 expected, but the outlook for revenue actually increased from a range of $927 million to $931 million to a range of $955 million to $959 million. This begs the question, are shareholders selling off too soon? Read more here.

Get this week’s full earnings calendar here.

Pádraig BolgerPádraig Bolger