Amazon, Shopify stocks tumble as focus shifts to upcoming Q2 results

July 28, 2021 04:54 AM AEST | By Team Kalkine Media
 Amazon, Shopify stocks tumble as focus shifts to upcoming Q2 results
Image source: whiteMocca,Shutterstock

Summary

  • Amazon.com, Inc. (NASDAQ:AMZN) will release its Q2 results on July 29.
  • Shopify Inc. (NYSE:SHOP) will release the report on July 28.
  • AMZN fell 2.85%, while SHOP declined 3.12% at 1:45 pm ET on Tuesday.

Stocks of e-commerce companies Amazon.com, Inc. (NASDAQ:AMZN) and Shopify Inc. (NYSE:SHOP)plunged about 3%, close on the heels of their second quarter results this week.

AMZN fell 2.85%, while SHOP declined 3.12% at 1:45 pm ET on Tuesday. Amazon will report its Q2 earnings on Thursday, while Shopify will release the report on Wednesday.

Amazon saw solid growth during the pandemic. While that momentum continues, it also faces a string of concerns, from anti-trust moves to global tax issues. There have also been rumors of stock-slit of late as the new CEO takes over. But several observers have rebuffed the claims.

The stock gained around 6% in the month. Its 52-week highest and price was US$3,773.08 and US$2,871.00, respectively. The stock targets to achieve US$4,225.00 in the next one year.

Although the stock does not pay any dividend, it gave around 21% return in the past 12 months. The stock was priced at around US$3610 in the afternoon trading session on Tuesday.

As per the second-quarter guidance figures, the company’s net sales are expected to remain between US$110.0 billion and US$116.0 billion, and operating income to be between US$4.5 billion to US$8.0 billion. In addition, the guidance assumed that Amazon Prime Day would occur sometime in Q2. However, the 48-hour event took place from June 21 to 22. 

Also Read: GE, Raytheon raise 2021 free cash flow, profit target after Q2 results

Source: Pixabay

Also Read: UPS revenue climbs 14.5% in Q2 on robust online delivery growth

On the other hand, Shopify’s revenue comes from subscriptions and merchant solutions. 

This NYSE listed company has a market cap of US$198.6 billion. Its P/E ratio is 125.16, and the forward P/E for one year is 1067.09. It also does not pay any dividends. 

The stock was price at around US$1548 in the afternoon. It had touched a highest of US$1,650 and the lowest of US$839.40 in the last 52 weeks.

The company expects its full-year revenue growth would be lower than 2020. The pandemic had been a blessing in disguise for the company as online orders jumped. However, this year, physical retail sales are likely to moderate the sales boost it received due to covid.

Also Read: Seven blue-chip stocks that investors are watching right now

However, the company expects its subscription revenue to increase as more merchants join the platform. The SHOP stock gained 77% in the past year and rose around 11% in the past month.

Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.