Shopify is still on my radar, but...

They had bet on more growth than there turned out to be for now, and recently ended up laying off 10% of their employees.

This is the July 26 letter from founder and CEO Tobi Lütke to everyone working at Shopify:

“What we see now is the mix reverting to roughly where pre-Covid data would have suggested it should be at this point. Still growing steadily, but it wasn’t a meaningful 5-year leap ahead. Our market share in ecommerce is a lot higher than it is in retail, so this matters. Ultimately, placing this bet was my call to make and I got this wrong. Now, we have to adjust. As a consequence, we have to say goodbye to some of you today and I’m deeply sorry for that.”


In previous quarter the biggest chunk of their loss was mark to market of their stock investments. Operating numbers look ok. They over invested in growth and now trim some excesses.