Shopify‘s (SHOP) Unite conference apparently let investors down. Shopify stock fell on Tuesday as the biggest news coming out of the Unite conference was a reduction in app store fees for developers on their first $1 million in revenue.
“While the event appears to have disappointed the market, given the lack of new high-profile product announcements, we believe Shopify creating a robust developer ecosystem is the company’s most important strategic priority,” RBC Capital analyst Paul Treiber said in a report.
Shopify stock slipped 0.8% on Tuesday. SHOP stock edged down 0.7% to near 1,482 before the market open on the stock market today.
The company sets up e-commerce websites for small businesses, and partners with others to handle digital payments and shipping.
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The company’s earnings boomed in 2020 as merchants rushed to set up online storefronts, but analysts expect earnings and revenue growth to slow markedly in the back half of 2021 as economies reopen.
Treiber said investors had hoped for “a new high-profile product announcement” during the Unite conference. “The most visible product announcement at Unite was Online Store 2.0, which represents a material upgrade to Shopify’s core offering,” he added. “The upgrade allows merchants to better customize their stores and create unique online experiences.”
Shopify stock hit an all-time high of 1,552.06 in intraday trading on June 21 but pulled back in a bearish signal. SHOP stock, which has forged a cup base, still holds a buy point of 1,499.85.
Shopify stock holds a Relative Strength Rating of 82 out of a best-possible 99.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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