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Shopify's Shares Tumble Despite Revenue Growth in Q2



Shopify Inc. experienced a near 19% drop in its shares following the announcement of its fiscal second-quarter earnings, which, despite showing robust revenue growth, disappointed with lower future revenue and margin forecasts. The e-commerce giant predicted revenue growth in the high teens for the next quarter, a slowdown from its previous mid-20s growth rate. Moreover, the company anticipates a 50 basis point decline in gross profit margin and a slight increase in operating expenses due to enhanced marketing efforts. The unexpected guidance, particularly regarding the profit margins, has unsettled investors, leading to a significant decline in Shopify's stock value.






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