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Shopify Stock Tumbles On Q1 Earnings Miss, $2.1 Billion Deliverr Deal: eBay Slumps On Muted e-Commerce Outlook

Shopify followed eBay is posting weaker-than-expected first quarter earnings as e-commerce platforms navigate what company president Harley Finkelstein called "massive macro shifts" in consumer behavior.

Updated at 11:12 am EST

Shopify  (SHOP) - Get Shopify Inc. Class A Subordinate Report shares tumbled Thursday after the e-commerce platform posted weaker-than-expected first quarter earnings and unveiled plans to buy logistics group Deliverr for around $2.1 billion.

Shopify said adjusted earnings for the three months ending in March came in at 20 cents per share per share, compared to a profit of $2.01 per share over the same period last year and a Street consensus forecast of 77 cents per share. Total revenues rose 22% to $1.2 billion, the company said, while gross merchandise volumes rose 16% $43.2 billion but missed Street forecasts of a $45.4 billion tally.

Shopify also said will pay $2.1  billion for San Francisco, California-based Deliverr as it looks to support its fulfillment challenges linked to the supply chain disruptions that have blunted parcel delivery systems all over the world. 

"Being able to offer a delivery promise and fast fulfillment across all these channels boosts conversion," said Shopify CO Amy Shapero. "We are confident Deliverr's ability to simplify the process, and arm merchants with visibility and control from the display of a delivery promise across multiple channels through its completion, will be a huge benefit to our merchants."  

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Shopfiy shares were marked 17.4% lower in early trading following the earnings release to change hands at $400.90 each, a move that would extend the stock's year-to-date wipeout to around 71%. 

Late Wednesday, Shopify's larger U.S. rival, eBay Inc.  (EBAY) - Get eBay Inc. Report, added to a spate of muted outlooks from consumer-facing tech groups that overshadowed solid first quarter earnings.

eBay said revenues for the three months ending in March fell 17.2% to $2.5 billion, although that tally topped analysts' forecasts and helped the group to an adjusted bottom line of $1.05 per share, 2 cents ahead of the Street consensus forecast.

Active buyers on the platform were down 13% to 42 million, however, and those that remained were spending less: gross merchandise volumes fell 20% to $19.4 billon.

eBay said that post-pandemic trend was likely to continue, forecasting current quarter revenues of between $2.35 and $2.4 billion and adjusted earnings in the region of 87 cents to 97 cents per share, as the impact of Russia's war on Ukraine impacts both sales and consumer confidence in some of its European markets.

eBay shares were marked 6.7% lower at $50.86 each.