Three times in the past 13 years, a Canadian technology firm has burst into prominence and become the country’s most valuable public company. The first two times it proved to be a curse: Nortel Networks Corp. eventually went bankrupt and BlackBerry Ltd. lost its dominance of the smartphone market.
E-commerce company Shopify Inc. may prove to have more staying power, but its more than 50% drop since Nov. 19 is testing the bulls’ resolve. The swift decline has multiple causes, including the market’s rotation away from high-priced growth stocks and a slowdown in online sales. U.S. non-store retailers had a difficult December, with sales falling 8.7%.