Cramer calls Shopify’s financial guidance ‘quizzical’ after such a strong quarter
CNBC’s Jim Cramer said Tuesday that Shopify investors are searching for clues after the company’s financial outlook fell short of expectations, tanking shares despite a positive quarter. Shopify reported fourth-quarter earnings before the opening bell, delivering strong year-over-year revenue growth and healthy profitability. But it was management’s lower-than-expected margin guidance for the fiscal 2024 first quarter that weighed on shareholder confidence and sent the stock 10% lower in Tuesday trading. The company forecast higher Q1 marketing and employee-related expenses. The e-commerce platform has been a “fantastic engine” for small and medium-sized businesses that want to be able to offer online shopping to their customers, Cramer said. But he added that management’s guidance was “quizzical” given the company’s solid financial results for the quarter and after its strong run last year. Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club , does not have a position in Shopify. The Club owns e-commerce giant Amazon . SHOP 1Y mountain Shopify 1 year Cramer will speak with Shopify President Harley Finkelstein on “Mad Money” on Tuesday evening to drill down on the quarterly results and the guide.
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