Shopify Shares Slide Amid Amazon's Earnings Impact: What You Need To Know

Zinger Key Points

Shopify's shares declined 6.31% to $54.50, influenced by Amazon's mixed Q2 earnings report and soft Q3 guidance.
Shopify's upcoming Q2 earnings report, expected on August 7th, forecasts an EPS of 20 cents and revenue of $2.011 billion.
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Shopify Inc. SHOP shares are experiencing a decline on Friday. This movement is attributed to e-commerce and broader market reactions following Amazon.com Inc. AMZN mixed second-quarter earnings report and soft third-quarter guidance.

What To Know: Amazon reported mixed second-quarter earnings after Thursday’s closing bell, with net sales missing analysts’ estimates. Despite AWS revenue slightly surpassing expectations at $26.3 billion, the overall guidance for third-quarter was softer than anticipated, with projected net sales ranging from $154 billion to $158.5 billion.

Several analysts have also adjusted their price targets for Amazon, further influencing market sentiment. Stifel, Jefferies, Piper Sandler and JP Morgan all lowered their price targets for Amazon.

What Else: Shopify is set to release its second-quarter earnings report on Wednesday August 7th, before the market opens. The company is expected to report an estimated EPS of 20 cents and revenue of $2.011 billion. Additionally, analysts have shared mixed opinions on Shopify’s prospects. Over the past month, three industry analysts have proposed an average target price of $76.33 for the stock:

Wolfe Research downgraded its rating to Outperform and adjusted the price target to $80.
Piper Sandler maintained a Neutral rating with a price target of $67.
B of A Securities upgraded its rating to Buy with a price target of $82.

SHOP Price Action: Shopify shares fell by 7.31% to $53.92 at the time of writing, according to Benzinga Pro.