Shopify (SHOP) – Get Report shares rose Thursday after Jefferies analyst Samad Samana upgraded the online-shopping host to buy from hold and lifted his share-price target to $1,250 from $1,150.
“We have a greater appreciation for SHOP’s ability to deliver robust growth for the next several years and reach about $10 billion of revenue in 2025, powered by a structural pull-forward in e-commerce activity and better monetization of [gross merchandise value],” he wrote in a commentary.
Shopify shares recently traded at $977.90, up 5%. They have well more than doubled year to date as Internet shopping has exploded during the coronavirus pandemic.
“We expect SHOP to sustain strong GMV growth in the fourth quarter, powered by holiday shopping,” Samana said. “With [the] shares about 20% off 2020 highs, we see now as an opportunistic entry point.”
The prospects for Shopify in the long term are bright, the analyst
Shopify (SHOP) – Get Report got a pandemic-driven earnings and sales boost in the third quarter as more businesses jumped on to its e-commerce platform to sell their wares online.
The Ottawa-based tech company posted adjusted earnings of $133.2 million, or $1.13 a share, in the third quarter vs. a loss of $33.6 million, or 29 cents a share, a year ago. Analysts polled by FactSet had been expecting per-share earnings of 52 cents a share.
Revenue was $767.4 million in the quarter, up 96% from a year ago and well above analysts’ forecasts of $657.8 million.
Operating income was $50.6 million, or 7% of revenue, vs. a loss of $35.7 million, or 9% of revenue, for the comparable period a year ago. Adjusted operating income was $130.9 million, or 17% of revenue.
Subscription solutions revenue jumped 48% to $245.3 million, primarily due to more merchants joining the
Shopify (SHOP) – Get Report and TikTok will partner in what the video-sharing app operator said will help more than 1 million merchants create and runcampaigns on the short-video platform.
Shares of Ottawa-based Shopify, the e-commerce software-and-services provider, were climbing 4.42% to $1,084.45 on Tuesday.
Through the program, merchants can create campaigns, target audiences and track performance in one place. They will also be able to install or connect their TikTok Pixel with a click of a button.
The channel is now available in the U.S., and will become available in other North American markets, Europe and Southeast Asia in early 2021, TikTok said in a statement.
TikTok noted a recent study found that 88% of its users said they discover new content they enjoy while using the app, and about half said they discover new products through advertisements posted by a product or brand.
Canadian e-commerce company Shopify announced Tuesday a partnership with TikTok that will allow its more than one million online retailers to hype their wares on the teen-centric platform for short-form videos.
The deal comes amid scrutiny of the China-based app and a pending court hearing on TikTok’s future in the United States, where it reaches more than 100 million users monthly.
“We’re thrilled to be the first partner to welcome TikTok to the world of commerce, particularly right now, as our merchants prepare for a busy online holiday shopping season,” Shopify vice president Satish Kanwar said in a statement.
Shopify hosts e-stores for mostly small- and medium-sized businesses and in the eyes of many merchants has emerged as an alternative to Amazon’s online marketplace.
Its partnership with TikTok, it said, will allow TikTok users to simply click on shoppable video ads to buy products from Shopify merchants.
The pandemic has forced businesses worldwide to pivot online to survive, and many have turned to Shopify, a Canadian company that has emerged as a thriving alternative to Amazon.
Founded 15 years ago in Ottawa, Shopify allows businesses to create an e-commerce site in just a few clicks. Already growing with more than one million e-stores at the end of 2019, its user base has exploded.
“The retail world that would have existed in 2030 has really been pulled back into 2020,” Shopify president Harley Finkelstein said in an interview with AFP.
“It feels like Covid has permanently accelerated the growth of online commerce.”
Amid a lockdown of bricks and mortar stores, online commerce has boomed this year. Consumers have grown accustomed to buying over the internet, and industry giants, led by Amazon, have seen sales rocket.
Closed shops in Byward Market, Ottawa — Canadian company Shopify is challenging Amazon