Shopify Plunges Amid Signs Growth Surge Starting to Slow


Shopify Inc. shares tumbled as much as 14 percent after cracks began to appear in the company’s stellar growth rate.

The Canadian e-commerce company reported revenue that beat badysts’ estimates for the 10th-consecutive quarter, raised its full-year outlook and recorded an operating profit ahead of schedule. But the shares tumbled as badysts homed in on a slowdown in growth of gross merchandise volume, the total amount of goods and services sold through Shopify. Executives also dampened sales expectations for the first quarter of next year as the company becomes more cyclical.

Shopify, based in Ottawa, fell to as low as $94.51 in New York on Tuesday. It was the biggest drop since Oct. 4, when shortseller Citron Research cast doubts about the company’s prospects. The shares were trading at $100.26 at 3:06 p.m. in New York.

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