Shopify shares plummeted more than 13% to C$149.80 after the e-commerce giant warned of tightening margins for the first quarter. The company attributed the outlook to aggressive investments in its merchant network and long-term growth initiatives. This sell-off in tech services, alongside weakness in the finance and commercial sectors, largely offset gains in energy and healthcare.
In section Market Quotes
Shopify Sell-Off Drags Toronto Stocks Lower Despite Housing Boost
Toronto’s main stock index retreated on Wednesday as a sharp decline in Shopify shares overshadowed a robust report on Canadian construction activity. By midday, the S&P/TSX Composite Index fell 0.4% to 33127.18, reversing earlier gains as investors weighed cautious tech guidance against broader economic signals.
On the macroeconomic front, data showed that Canadian building permits surged 6.8% in December. This increase capped the strongest quarter for construction intentions in four years, fueled primarily by a spike in residential building plans. Despite this underlying strength in the housing sector, broader market sentiment remained tethered to corporate earnings and sector-specific volatility.
Divergent Corporate Performance
Individual performance varied across the exchange as companies reported contrasting results for the final quarter of the year:- Alimentation Couche-Tard shares rose 4.8% to C$83.80 after the retailer announced a strategic pivot toward strengthening core platforms and pursuing targeted acquisitions.
- Cineplex saw its stock dip 2.3% to C$9.68 following a profit decline, which the company blamed on dwindling theater attendance and weaker box-office revenues.
- The blue-chip S&P/TSX 60 tracked the broader market's decline, falling 0.6% to 1915.97 by the middle of the session.
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