Shopify Stock Plunges on Revenue Forecast

Shopify Inc (NYSE:SHOP) is staging a post-earnings plummet, down 15.2% at $14.28 at last glance, and one of the worst stocks on the New York Stock Exchange (NYSE) so far today. The stock is brushing off better-than-expected fourth-quarter results, as well as no fewer than 10 price-target hikes, after the merchant platform's disappointing first-quarter revenue forecast. 

Today's drop has SHOP erasing its February gains, though the security is still up 28.9% since the start of 2023. The shares are also breaking below recent support at their 20-day moving average. 

In the options pits, calls were more popular than usual leading up to the event. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 2.39 calls have been bought for every put in the last 10 weeks. This ratio ranks higher than 89% of readings from the past year. 

Today, 120,000 calls and 96,000 puts have crossed the tape so far, which is five times the intraday average volume. The February 45 put is the most active contract, with new positions being opened there, followed by the February 50 call.