Shopify Suffered an Outage at the Worst Possible Time. What to Make of the Stock’s Cyber Monday Slump.

The company said it was investigating the tech issues as of Monday afternoon. (Dreamstime)

Key Points

• Shopify shares fell 4.5% on Monday after technology issues affected merchant logins and platform access.
• The company acknowledged a partial outage, impacting point-of-sale, mobile platforms, and support contact.
• The stock drop exceeded the S&P 500’s 0.5% decline, as online spending was projected to hit a record $14.2 billion on Cyber Monday.

So much for Cyber Monday.

Shares of Shopify tumbled 5.9% on Monday after the widely used e-commerce platform reported technology issues impacting some merchants. Shoppers were still able to browse and purchase from online storefronts, a spokesperson told Barron’s.

“Merchants may experience issues when trying to login to Shopify,” the company said on its status site on Monday morning. The company added that merchants may also have trouble logging into point-of-sale and mobile platforms and while attempting to contact Shopify Support.

The issue had been mitigated by Monday evening, Shopify said in a statement on social media. As of early Tuesday, the Shopify status site reported that all of its systems were operational.

Dozens of apparent Shopify merchants posted screenshots of login error messages in response to the company’s X post celebrating Cyber Monday.

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Post-Thanksgiving shopping continued to transition to e-commerce and away from in-person stores this year. Online shoppers in the U.S. were expected to spend a record $14.2 billion on Cyber Monday alone, according to data from Adobe .

Shares were up 0.8% in premarket trading on Tuesday.

Write to Nate Wolf at nate.wolf@barrons.com