Ecommerce platform provider Shopify (SHOP) reported a bad quarter Thursday before the open. Revenue growth decelerated to 22% as the economy reopens and consumers shift more of their spend to brick and mortar from online. SHOP said it expects this to continue next quarter as it laps tough comps. Adjusted EPS plummeted to 20 cents from $2.01 a year ago. Shares finished down 15% on big volume and are now down more than 75% since their November high.
Nevertheless SHOP is still a great company – a leader of the future. Ecommerce is a secular growth story and SHOP is the leader in providing online storefronts to small businesses. Shorter term I also believe shares are due for a bounce and I picked up some today.