Shopify (SHOP) shares are plunging after the company announced it expects decreasing gross margins during the current quarter as it navigates the fallout from the sale of its logistics business to Flexport.

Shares fell nearly 20% in extended hours trading, as Shopify also expects its revenue to take a hit. Wall Street is bearish on the stock as the company currently faces higher operating costs and weakened consumer spending.

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This post was written and updated by Melanie Riehl