Shares of Canadian e-commerce company Shopify (SHOP) continue to plunge as analysts lower their price targets on the stock.
More than 20 analysts cut their targets on Shopify’s stock a day after the company reported disappointing earnings and provided weak forward guidance, news that sent the share price down 17% on February 16, its biggest one-day drop ever.
Yesterday (February 17), Shopify stock fell another 11% to $837.09 a share on the Toronto Stock Exchange, reaching its lowest level since the onset of the pandemic in April 2020. Shopify’s stock has now fallen 46% year-to-date, losing about $100 billion in market value.
Shopify’s business surged during the pandemic, with sales jumping 86% in 2020 as shoppers moved online. It became Canada’s most valuable company by market capitalization, overtaking Royal Bank of Canada (RY) as the most valuable security listed on the Toronto Stock Exchange (TSX).
However, Shopify fell from the top spot on the TSX last December amid a broader selloff in technology stocks, and as shoppers returned to brick-and-mortar stores. In January, Shopify said it had canceled warehouse and fulfillment-center contracts, pushing shares to a then 16-month low.