Why Shopify Stock Rose Today

What happened

Shares of Shopify (NYSE: SHOP) climbed 5.4% on Monday after the online retail platform reported a surge in Black Friday sales.

So what

More than 1 million merchants in 175 countries generated $2.4 billion in Black Friday sales on Shopify’s platform. That represented a staggering 75% year-over-year increase.

Shopify’s stock popped on Monday following a strong holiday sales report. Image source: Getty Images.

In a statement released on Nov. 30, Harley Finkelstein, president of Shopify, said:

With more consumers than ever shopping online this year, we anticipate this weekend being one of the biggest e-commerce events in history, as consumers vote with their wallets and support the independent and direct-to-consumer businesses they love.

Now what

Shopify provides the tools entrepreneurs need to start and grow online businesses. Merchants have flocked to its platform during the coronavirus pandemic, as store closures and social distancing measures drove many retailers to shift their operations to online channels.

Online sales have helped to keep many of these retailers afloat during the COVID-19 crisis. With Shopify serving as their trusted technology partner, the e-commerce star stands to benefit from its continued success. Sophisticated investors know this, and they bid Shopify’s stock up on Monday in anticipation of its strong growth this holiday shopping season and in the years that follow.

10 stocks we like better than Shopify
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Shopify wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of November 20, 2020

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify. The Motley Fool has a disclosure policy.

You May Also Like

About the Author: Over 50 Finance