Tag Archives: technology

Shopify Falls As Losses To Widen Despite Soaring Revenue

Shopify ( SHOP ) shares fell Wednesday after the e-commerce software provider forecast bigger full-year losses and some investors sold after a recent jump in the stock. The full-year operating loss will be $41 million to $47 million, Shopify said, compared with a previous forecast of $36 million to $42 million. Last month, Shopify secured new office space in Toronto that can accommodate as many as 700 employees, signaling more spending by the company. The operating loss for the first quarter was $9.7 million, the company said, compared with $3.5 million a year earlier. The stock fell 4.4% to 29.39 in afternoon trading on the stock market today . Shopify’s first-quarter revenue and its sales forecast exceeded analysts’ estimates. However, that wasn’t enough after a 31% climb in the shares over the past three months had raised hope for even better performance. “Some investors are taking the profits — some of the very substantial profits they’ve made over the past three months,” said Gil Luria, an analyst at Wedbush Securities. “The stock implied a very good quarter.” Revenue in the three months ended March 31 surged 95% to $72.7 million, Ottawa-based Shopify said in a statement, beating the average analyst estimate of $66.9 million. In the second quarter, sales will range from $79 million to $81 million, above the $74.8 million average analyst estimate. The Canadian company also forecast full-year sales of $337 million to $347 million, compared with a previous forecast of $320 million to $330 million and analysts’ estimates of $327.9 million. Mobile orders surpassed those on desktop for the first time in the first quarter, Shopify said, as just over 51% of orders came from mobile devices. An integration with the Facebook ( FB ) Messenger app makes it easier for merchants to engage in “conversational commerce” with customers, Shopify said. “The era of mobile commerce has officially arrived,” founder and Chief Executive Officer Tobi Lutke said in the statement. “Mobile orders from Shopify merchants surpassed those of desktops in February, and have continued to climb since.”

T-Mobile Could Gain From Spectrum Flood, But Not If Auction Drags On

T-Mobile US ( TMUS ) stands to gain from the availability of more radio spectrum than expected in a government auction of airwaves, though it’s not good for the wireless communications provider if the auction drags on, says a Goldman Sachs report. T-Mobile says it could spend up to $10 billion in the auction. Other bidders are expected to be AT&T ( T ), Verizon Communications ( VZ ) and cable TV firm Comcast ( CMCSA ). The complex “Broadcast Incentive Auction,” which started March 29, is expected to free up airwaves now owned by local TV stations. The Federal Communications Commission said Friday as much as 100 MHz of spectrum may be available for bidders in most U.S. markets. About 70 MHz had been forecast. The next step in the auction involves setting initial prices for the airwaves in specific cities. “While broadcasters will only sell if they get their desired prices, a large spectrum supply may yield attractive prices for wireless carriers,” Brett Feldman, a Goldman Sachs analyst, said in a report. “We view this as most positive for T-Mobile, which is looking to bolster its thin low-band spectrum position in this auction so it can provide coverage that is more competitive with AT&T’s and Verizon’s.” UBS analyst John Hodulik had a similar view. “Greater spectrum availability is a positive for T-Mobile, given its low-band needs and Comcast,” Hodulik said in a report. Shares in T-Mobile, controlled by Deutsche Telekom ( DTEGY ), are about even in 2016. T-Mobile stock edged down 0.4% in the stock market today . Analysts say one overhang on shares in Verizon, AT&T and T-Mobile is how much they may spend in the auction. Another view is that telecom mergers and acquisitions are on hold until the auction is over. While the auction has been expected to be over in the September quarter, it may drag on until the fourth quarter. That would be a negative for “ Dish Network ( DISH ) and T-Mobile, since many investors believe that their strategic options will be limited until the auction concludes,” said Feldman. Citigroup recently said Dish Network, which has amassed some 77 MHz of radio spectrum, could resume talks with Verizon over a possible sale after the auction ends.

Will SunPower’s Expected Q1 Loss Torch First Solar, SolarCity?

No. 2 solar developer SunPower ( SPWR ) is expected late Thursday to report its first quarterly loss minus items since Q1 2012, and declining year-over-year sales, a week after top rival First Solar ( FSLR ) missed quarterly sales views by $100 million, citing project timing. IBD’s 20-company Energy-Solar industry group has been whacked daily since First Solar’s report late Wednesday, and on Thursday it fell 4.9%. On Tuesday, reports of slow Q2 bookings for SolarCity ( SCTY ) and Sunrun ( RUN ) prompted a 5.4% plunge for the group. Early afternoon on the stock market today , the group was down a fraction, at a nearly three-month low, with shares of SolarEdge ( SEDG ), First Solar and SunPower — down 5%, nearly 2% and 2.5%, respectively — topping the deluge. Enphase Energy ( ENPH ), which trades around 2, was down hardest at 12%, after its Q1 sales and earnings miss late Tuesday. Enphase’s stock topple likely tugged SolarEdge stock, which competes with Enphase in the module and inverter market. Late Tuesday, Enphase CEO Paul Nahi blamed pricing pressure in the U.S. and internationally for the sales miss. As for SunPower, the consensus of 16 analysts polled by Thomson Reuters expect Q1 sales to fall 24% from Q1 2015, to $328.5 million. They see a 20-cent per-share loss minus items vs. a 13-cent per-share profit in the year-earlier quarter. Three months ago, SunPower guided to $290 million to $340 million in sales, but didn’t offer EPS guidance. The company saw 315 megawatts to 340 MW deployed during Q1.