The last few months were very hard for lots of companies. As the pandemic surged, and governments issued lockdowns, most firms were forced to close, remaining out of business for a long while.
However, some companies managed to profit from the pandemic due to their occupation. These were largely food, medical or internet stocks. Shopify is a tech stock. It helps over one million businesses build, grow, and maintain their e-commerce presence.
The coronavirus pandemic has set e-commerce in the spotlight, as businesses rush to roll out for the first time or give their digital retail platforms a boost. Shopify’s offerings are very attractive, as retailers need to expand their digital reach to better spread the word about their businesses.
As a result, Shopify’s sales are growing rapidly, skyrocketing by 73%, 59%, and 47% in the last three years alone. The company gets to profit from recurring subscription fees and add-ons, such as payment processing. Furthermore, it partners with influential players within tech and retail, among them Walmart and Facebook.
How much has Shopify gained so far?
Shopify is very famous right now. The stock surged forward by more than 200%, rallying from under $350 per share to over $1,000. It surpassed stay-at-home standouts such as Zoom and Netflix since mid-March.
Since its e-commerce sales accounted for approximately 12% of total U.S. retail sales in the first quarter, Shopify has lots of space to expand beyond that.
According to forecasts, the company’s adjusted Q2 earnings may slip to -$0.01, but its full-year EPS figures could jump by 73% and another 23%.
The stock’s Q2 sales may jump 38%, with its full-year revenue projected to rally by 37% in FY20 and another 34% in FY21. That would be a slowdown compared to the stock’s recent growth. But despite that, Shopify remains strong, standing out within the current economic conditions. That’s why analysts gave it a Buy rating.