Shopify (SHOP) investors saw the stock gaining +18.87% the last 5 days, which means it sits at +40.36% YTD.
Let's go through the news around Shopify this week together.
LEGEND: Positive News | Neutral News | Negative News
Shopify announced price hikes across the board for merchants using its platform - the first in 12 years.
The changes are as follows for each plan:
- Basic Plan: $29 > $39
- Shopify Plan: $79 > $105
- Advanced Plan: $299 > $399
Shopify thus far has been focused on growing market share, but this move with pricing implies they are ready to pull the levers to increase profitability.
This is a picture perfect example of operating leverage - but we'll see how churn rates are once these changes are fully into effect (there's a couple of months grace period for existing merchants before these prices apply to them).
If we see churn stay flat, profits for Shopify would increase substantially in coming months, thus making this a more attractive investment.
Shopify announced a date for their Q4 2022 earnings.
All eyes will be on the stock on Wednesday, February 15 after market close for results from Shopify.
The CTO of Shopify (Allan Leinwand) has decided to leave the company due to personal reasons.
Allan was the CTO for 15 months. His departure comes as a surprise to the company and no replacement CTO is planned right now. The CEO (Tobi Lutke) will be taking over responsibilities as he continues to lead as CEO as well.
News broke that Shopify laid off their VP of Infrastructure (Mike Lents) and VP of Engineering (Ravi Byakod) earlier this month.
Shopify commented on this move, stating that "We thank them for their contributions to the company and our merchants," and "The rapid pace of change in commerce often necessitates organizational adjustments to help ensure Shopify and our merchants are best supported to succeed over the long term."
Shopify is going through some serious re-org to optimize cost, and this could be impacting employee morale - however the stock has had a phenomenal start to 2023 so investors like these changes.
We look forward to spending a few minutes with you next Sunday for some new Shopify news!
Disclosure: I am not a Shopify (SHOP) shareholder at the time of publishing.
