What happened
Shares of Shopify (SHOP +3.18%) climbed nearly 10% this past week, according to data provided by S&P Global Market Intelligence, after the commerce platform moved to strengthen its leadership team.
So what
Shopify hired Jeff Hoffmeister to serve as its new chief financial officer. He will replace Amy Shapero, who will step down after the company's third-quarter 2022 earnings release on Oct. 27.
Hoffmeister has more than two decades of experience at Morgan Stanley, most recently as managing director of its Technology Investment Banking group. Hoffmeister led Shopify's initial public offering (IPO) in 2015. He also has expertise in mergers and acquisitions.
NASDAQ: SHOP
Key Data Points
Additionally, Shopify promoted Kaz Nejatian, its vice president of product, to chief operating officer. He's replacing Toby Shannan, who retired and is set to join the company's board of directors on Jan. 1.
Now what
Shopify has been battered by slowing e-commerce sales and rising costs. In July, Shopify slashed 10% of its workforce after reporting a marked deceleration in its revenue growth rate and a $1.2 billion net loss. Even after this week's gains, its stock price is down nearly 75% in 2022.
Yet Hoffmeister's hiring suggests Shopify is gearing up for renewed growth. Hoffmeister's investment banking experience could serve Shopify well in its hunt for new acquisition targets. The e-commerce leader recently completed its $2.1 billion purchase of fulfillment specialist Deliverr, and it's seeking more ways to bolster its fledgling delivery network.
"As we position Shopify for the future, the addition of Jeff to our leadership team will continue to strengthen our ability to deliver value for our merchants, partners, and investors," founder & CEO Tobi Lütke said in a press release. "We are fortunate to benefit from his more than 20 years of investment banking experience in the technology sector, and his keen vision of the future of the industry."
