Shopify Inc. (NYSE:SHOP) shares lost more than 20% since Wednesday’s close on disappointing Q1 results, with EPS of $0.20 coming in worse than the Street estimate of $1.00. Revenue was $1.2 billion, missing the Street estimate of $1.6 billion.

Quarterly GMV and MRR both missed consensus estimates, and commentary indicates tougher compares and a shift from goods to services will remain headwinds into Q2 and beyond, thus driving 2022 estimates lower. Furthermore, accelerating S&M investments against a slowing merchant backdrop, along with a recommitment to invest all gross profit back into the business, raises questions on unit economics, particularly as margins broadly come more into focus for investors.

The company also announced the acquisition of asset-light 4PL Deliverr for $2.1 billion for 80% cash and 20% stock, in order to help accelerate the timeline to scale Shopify Fulfillment Network.

According to the analyst at Deutsche Bank, this acquisition helps Shopify better compete with Amazon’s Buy with Prime, by offering ‘Shop Promise’ 2-day or next-day delivery, as well as potentially limits the longer-term Capex-heavy investment cycle, given Deliverr’s success in leveraging 3PL partners.