What happened
Shares of e-commerce platform provider Shopify (SHOP 4.90%) took a hit on Tuesday, extending a bearish trend for shares this year. The stock is down 38% year to date.
The growth stock is likely down due to a combination of a tough day in the overall market and another price-target cut on Shopify shares from an analyst.
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So what
KeyBanc analyst Josh Beck lowered his price target for the stock on Tuesday, dropping it from $1,750 to $1,250. This revised price target is still well above where shares are trading today -- around $850 -- so the analyst kept an overweight rating (similar to a buy rating) on the stock.
This move follows Wedbush's decision yesterday to lower its price target on the stock. Wedbush analyst Ygal Arounian gave shares a $1,296 price target (down from $1,500), citing concerns about rumors that the company is facing some challenges to successfully build out its fulfillment network. But this analyst similarly kept the equivalent of a buy rating on the stock.
Highlighting a tough day in the market on Tuesday, the S&P 500 is down more than 2% as of this writing, and the Nasdaq Composite is down about 2.5%.
Now what
Shopify investors might have to wait awhile before they hear from management about how business is going. The company typically reports on its fourth quarter around mid-February. But maybe Amazon's (AMZN 1.30%) upcoming earnings report on Feb. 3 could shed some light on how e-commerce is performing recently, although Shopify has notably been growing much faster than Amazon recently -- so investors are likely hoping this remained the case in the fourth quarter.
