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Shopify plunges on surprise loss, warns of thinner margins



Shopify, a leading e-commerce platform, faced a significant blow as its shares took a nosedive following unexpected losses reported in its quarterly earnings. The company, which usually boasts robust profits, found itself in the red, recording a loss of $273 million for the quarter, a stark contrast to the $68 million profit it had made the previous year. Despite a positive 23% increase in revenue, reaching $1.86 billion, and a similar surge in gross merchandise volume, investors were rattled by the unexpected financial downturn, causing Shopify shares to plummet by as much as 19% during premarket trading in New York.


Meanwhile, Brookfield Asset Management (BAM) encountered its first quarterly profit decline since its spinoff over a year ago. BAM reported earnings of $547 million for the quarter, down from $563 million a year earlier. Although in line with estimates, this decline was notable, particularly as fees decreased in three out of its five business units. However, BAM did manage to amass $20 billion in cash during the quarter, positioning itself to seize investment opportunities in the near future.


In the energy sector, the price of West Texas Intermediate crude oil dropped to $77 a barrel due to rising oil inventories. With stockpiles increasing, particularly in key areas like Cushing, Oklahoma, and with weaker demand coinciding with geopolitical tensions easing, oil prices faced downward pressure.


On another front, TD Bank endeavored to address ongoing concerns regarding money laundering probes. CEO Bharat Masrani expressed the bank's commitment to resolving regulatory issues, including provisions set aside for potential fines exceeding $400 million, amid investigations in Canada and the U.S.


Lastly, Boeing confronted fresh challenges as the Federal Aviation Administration initiated an investigation into falsified inspection records at one of its South Carolina plants. This revelation, coupled with previous setbacks, such as the Boeing 737 Max incidents, underscored the company's ongoing struggles with compliance and quality control.


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