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Shopify Tumbles on a Report of It Terminating Fulfillment Contracts

  • Canadian tech giant falls 14%, most since March 2020
  • Baird analyst says Shopify could be launch its own network
Updated on

Shopify Inc. plunged by the most since March 2020 after a report that the Canadian e-commerce company terminated contracts with several warehouse and fulfillment partners.

Its U.S.-traded shares closed down 14% on Friday to the lowest level since September 2020 on high trading volume after the business publication Insider said Shopify was expected to have about half of its previous capacity for e-commerce orders for merchants, once changes are implemented. The report cited executives at four fulfillment companies in Shopify’s network.