What happened
Shopify (SHOP 1.11%) stock wasn't a choice item among investors Thursday. The e-commerce facilitator's shares took a more than 8% hit on the day. This occurred on the back of a fresh analyst price cut and scuttlebutt that the company might soon be on the hook for a pricey acquisition.
So what
Of those two items, it's likely that the buyout rumor moved the share price more. In an article updated Wednesday afternoon, Bloomberg wrote that Shopify is in discussions to purchase a tech start-up called Deliverr, which, as its name implies, assists e-commerce companies in getting their products to consumers quickly.
Image source: Getty Images.
Citing "people familiar with the matter," the financial news agency said that such a deal could put a more than $2 billion price tag on the privately held Deliverr.
Neither Shopify nor Deliverr has yet responded to the article. At the moment, Shopify's market cap is over $60 billion, while it held just under $7.8 billion in cash and short-term investments at the end of last year.
Now what
Meanwhile, analyst Darren Aftahi of Roth Capital substantially reduced his price target on Shopify stock. He cut his level to $625 per share, quite some distance from the previous $850. He maintained his neutral recommendation.
Aftahi cited the results of a Roth Capital survey indicating that Shopify's revenue should basically land in accordance with general analyst expectations. He also feels its stock is fairly priced at current levels, writing that, "We continue to see [Shopify] as best-of-breed in our space, but its multiple in this macro[economic] backdrop remains at a premium."
