Shopify Sell-Off Drags Toronto Stocks Lower Despite Housing Boost

Shopify shares plummeted more than 13% to C$149.80 after the e-commerce giant warned of tightening margins for the first quarter. The company attributed the outlook to aggressive investments in its merchant network and long-term growth initiatives. This sell-off in tech services, alongside weakness in the finance and commercial sectors, largely offset gains in energy and healthcare.

On the macroeconomic front, data showed that Canadian building permits surged 6.8% in December. This increase capped the strongest quarter for construction intentions in four years, fueled primarily by a spike in residential building plans. Despite this underlying strength in the housing sector, broader market sentiment remained tethered to corporate earnings and sector-specific volatility.

Divergent Corporate Performance

Individual performance varied across the exchange as companies reported contrasting results for the final quarter of the year:

• Alimentation Couche-Tard shares rose 4.8% to C$83.80 after the retailer announced a strategic pivot toward strengthening core platforms and pursuing targeted acquisitions.
• Cineplex saw its stock dip 2.3% to C$9.68 following a profit decline, which the company blamed on dwindling theater attendance and weaker box-office revenues.
• The blue-chip S&P/TSX 60 tracked the broader market's decline, falling 0.6% to 1915.97 by the middle of the session.