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Shopify Inc (TSX:SHOP) is all set to expand its collaboration with Google and Facebook Inc, bolstering its e-commerce checkout system for all retailers.
On the back of this development, SHOP stocks improved by almost two per cent on Tuesday, June 15.
Online merchants who retail their products via Facebook or Google arms, such as Instagram, Google Maps or YouTube, will be able to let their customers to pay via Shop Pay, as per the expanded collaboration. The system is set to commence for Facebook in July 2021 and later in the year for Google.
With this partnership, Shopify could reach over 1.8 billion users on Facebook and Google platforms, where more than a billion shopping transactions take place daily. Hence, this could provide a scope of growth for Shopify stocks.
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Shopify Inc (TSX:SHOP)
The global e-commerce industry has flourished amid the COVID-caused lockdowns. Adding to that, online shopping market analysts estimate that digital sales will be worth US$ 4.89 trillion this year.
Shopify witnessed a massive inflow of merchants on its platforms during the pandemic. In the US, nearly 10 per cent of online merchants presently use Shopify e-commerce platforms.
Stocks of the Canadian e-commerce giant soared over 47 per cent in the last one year, beating the benchmark index’s gain of 12 per cent in comparison.
While the stock is down 15 per cent from its record high of C$ 1,900 (February 10, 2021), it could rebound to achieve a milestone of C$ 2,000 per share.
Its previous close was C$1,611.12 apiece, with a market cap of 182 billion. The e-commerce stock is offering earnings per share of C$ 16.56.
Shopify’s one-year stock performance against moving average multiple and volume. (Chart Source: EODHD/Others)
Shopify stock’s price trajectory has zoomed almost 23 per cent in the last one month, beating its moving average multiples. Its one-day volume spiked to 164,272 shares, up against the 10-day average volume of 112,475 shares.
In the last five years, the stock has swelled over 4,226 per cent on the Toronto Stock Exchange (TSX) and become one of the valuable companies in the country.
Shopify posted revenue of US$ 988.6 million in the first quarter of 2021, a jump of 110 per cent year-over-year (YoY) against US$ 470 million in Q1 2020.
It reported subscription solutions’ top line of US$ 320.7 million for the quarter, a growth of 71 per cent YoY, propelled by the rising number of merchants on its platform.
Shopify expects an uninterrupted sales surge in the second half of 2021 and constant earnings for the next quarter.
Please note: The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view. The reference data in this article has been partly sourced from EODHD/Others.
