Shopify stock seen carrying weight of Canada curse into 2023
BNN Bloomberg
The curse of Canadian mega-cap technology stocks hit Shopify Inc. this year, and analysts see little relief ahead for the e-commerce company’s shareholders.
Shopify shares have tumbled 70 per cent in 2022 and brokerages see a gain of only 2.2 per cent for the Ottawa-based company’s shares in the next year. That’s the lowest expected return among this year’s 10 worst-performing Canadian and U.S. tech companies with market values of US$20 billion or more.
A huge rally early in the pandemic made Shopify the third technology business since 2000 to become Canada’s most valuable company. Its rise and subsequent fall is an echo of its two predecessors: Nortel Networks Corp., a darling of the dot-com era, later went bankrupt. BlackBerry Ltd. lost its dominance in smartphones and the stock has collapsed 96 per cent from its 2008 heyday.