E-Commerce Stock Falls As Q4 Earnings, Revenue Top Estimates | Business News

XCanada-based Shopify reported fourth-quarter earnings before the market open on Wednesday. Shopify earnings came in at $1.36 cents per share on an adjusted basis, down 14% from the year-earlier period. Management provided a general 2022 revenue outlook for SHOP stock.

Shopify stock fell 6.1% to near 835 before the market open on the stock market today. A year earlier, Shopify earned $1.58 per share on revenue of $978 million. Heading into the Shopify earnings report, the e-commerce stock had retreated 35% in 2022.

Shopify says it expects year-over-year revenue growth to be lower in the first quarter of 2022 and highest in the fourth quarter. Analysts had projected merchant solutions revenue of $985 million. Subscription solutions revenue climbed 26% to $351.2 million.

Shopify sets up e-commerce websites for small businesses, and partners with others to handle digital payments and shipping. "We do not expect the COVID-triggered acceleration of ecommerce in the first half of 2021 from lockdowns and government stimulus to repeat," the company said.