- 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.
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.
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.