The stock market has taken a battering over the past few weeks and many of the most popular stocks have been beaten down due to widespread selloffs. That being said, it also proved to be an opportunity for investors to buy into excellent companies, and one of the companies that managed to attract investment during this tough period was that of e-commerce platform Shopify Inc (NYSE:SHOP).
Shopify Stock is Up 70% in 1 Weeks
The stock has rallied by as much as 70% in the previous ten trading sessions, and it should be noted that in 2020 so far, it has recorded gains of 48%. Considering the gains recorded by the Shopify stock, it could be worthwhile to take a closer look at the company.
The company allows people to create and operate an online store quickly. It offers all the supporting tools like shipping, inventory regulation, and payments so that an e-commerce business can thrive. It has grown hugely popular over the years. However, the coronavirus pandemic forces the company to withdraw its projections for the full year.
Shopify also offered its customers certain breaks like 90 day free trials and support for in-store as well as curbside pickups, among others. However, the fact that online shopping has increased manifold has come as a major boost to Shopify.
Last week, the Chief Technology Officer at Shopify Jean-Michel Lemieux revealed that the company was handling the sort of traffic that it usually does on Black Friday. The company’s fourth-quarter performance was also a factor behind the rally. Subscription revenues soared 37% year on year, while the merchant solutions business went by as much as 53%. However, the market slump did affect the stock, and since February 19, it had given up as much as 41% of its value in only 26 days.
The stock managed to make up some of that later on. Experts believe that the service Shopify provides could eventually see the company recording significant growth. However, the stock remains a volatile one, and hence, investors might need to ride out periods of uncertainty.