When the pandemic caused global lockdowns it boosted entrepreneurial spirit and saw a surge in online stores being launched via Shopify, the Canadian e-commerce giant.
But one year later and the surge in new merchants and revenue growth is showing signs of slowing down.
This week the company reported its third quarter figures, which fell short of analyst expectations, with revenue up 46 to 1.12 billion dollars, but missing Wall Street estimates of 1.14 billion dollars.
As the coronavirus hit global economies, Shopify’s revenue grew by over 90 percent in four of the last six quarters as small businesses sought its infrastructure to set up their online stores.
As the holiday season approaches and global supply chains remain disrupted, the cooldown effect on online shopping is becoming evident. Shares in the New York-listed company fell about 4.5 percent on Thursday, compared to tripling in 2020.