Shopify Shares Tumble After Surprise Loss on Spending Boost
- Company spending $1 billion to set up fulfillment network
- Adjusted loss per share was 29 cents, analysts expected profit
The Shopify Inc. office in Waterloo, Canada.
Photographer: Cole Burston/BloombergThis article is for subscribers only.
Shopify Inc. reported an unexpected quarterly loss as the Canadian e-commerce company increased spending to expand its customer network and build out fulfillment centers across the U.S. The shares tumbled in early trading.
In the third quarter, the adjusted loss per share was 29 cents, compared with earnings per share of 5 cents a year earlier, the company said in a statement. Analysts’ were expecting a profit of 10 cents, according to data compiled by Bloomberg.