Why Shopify Shares Are Sliding

Shares of several companies in the broader technology sector, including Shopify Inc SHOP, are trading lower amid overall market weakness as growing COVID-19 concerns and omicron variant uncertainty weigh on market sentiment.

The COVID-19 omicron variant has now been detected in at least 45 U.S. states and nearly 80% of ICU beds are full across the country.

The U.S. is now reportedly averaging about 130,000 new COVID-19 cases each day, representing about a 10% increase compared to last week. 

Health officials have warned that the surge in COVID-19 cases could continue as people begin traveling for the holidays due to the omicron variant's heightened transmissibility.

See Also: Why Moderna Shares Are Rising Today

Shopify operates an e-commerce platform, primarily for small and midsize businesses.

SHOP Price Action: Shopify has traded as high as $1,762 and as low as $1,005 over a 52-week period.

The stock was down 3.11% at $1,282.74 at time of publication.

Photo: Open Grid Scheduler from Flickr.