Shopify stock plummeted as much as 18% on the back of weaker-than-expected 2022 forecasts.
The Canadian ecommerce brand expects revenue growth for the full year to be lower than the 57% it achieved last year as the pandemic-fuelled online shopping looks to slowdown.
“We do not expect the COVID-triggered acceleration of ecommerce in the first half of 2021 from lockdowns and government stimulus to repeat in the first half of 2022,” the company said in its fourth-quarter earnings report.
Shopify is hoping its commercial initiatives gain momentum in the second half of the year and improve its outlook.
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The company’s fourth-quarter results were strong as it watched the number of merchants using its platform hit double the number of 2019.
Its revenue beat estimations of $1.34 billion and came in at $1.38 billion.
Shopify introduced app integrations for Spotify and TikTok over 2021, while also offering merchants a plethora of new tools to use on the platform.
Shares of the company are down approximately by 50%, over the past 12 months.
