Shopify announces layoffs, sending ARKFintech Innovation ETF plunging

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Shopify ($NYSE:SHOP), one of the largest holdings in Cathie Wood’s ARKFintech Innovation ETF, announced layoffs on Tuesday, sending the ETF plunging. ARKF dropped about 5% in early trading. Wood has been a longtime bull on SHOP, leading ARKF to hold the largest portfolio position in the stock among all exchange traded funds that are available on the market. It is unclear how the layoffs will affect Shopify’s market and earnings in the long term.

However, the news has caused some investors to reevaluate their positions in the company.

Market Reaction

The news has been met with mostly negative sentiment, and on Tuesday, SHOPIFY stock opened at $31.8 and closed at $31.6.

VI Analysis

Shopify’s fundamentals reflect its long term potential, but there are some potential risks to consider before investing. Based on VI’s Risk Rating, Shopify is a high risk investment in terms of financial and business aspects. You can explore what these risks are in more detail on our website.

Summary

Shopify, a Canadian e-commerce company, has announced layoffs and this has sent the ARKFintech Innovation ETF plunging. This is negative news for investors.