The industry which benefitted and did not suffer any losses during this time of the coronavirus pandemic is the e-commerce industry. While Amazon, the great e-commerce giant made major gains during this time, Shopify was not too far away from the same. This company also made huge profits and made its way into the top stocks. People have opted for online shopping more than traditional shopping this year and that is why the e-commerce stocks grew greatly. Moreover, Shopify’s progress has even made it a competitor of Amazon and eBay both of which are e-commerce giants and tough to compete with. Therefore, the growth of the company is well evident without any doubt.
Shopify and 2020
The year 2020 was full of drastic changes and losses for many companies because of the imposition of the curfews and lockdowns, but some sectors also grew up high and rose from their previous status. Similar is the case with Shopify. The company’s quarterly earnings were quite a lot high as compared to its earnings in the last year. The earnings of the three quarters this year have come out to be as high as 82% when compared to the income of 2019. As of the third quarter, the company earned $412.6 million which was a rise of 88% since the 2019 third-quarter earnings were $219.4 million.
The rising percentage is very large and this shows that the company has effortlessly grown this year and has become stronger. If we compare it to eBay, then this year, in both quarter 2 and quarter 3, eBay was left behind Shopify in the gross merchandise volume. This happened for the first time and definitely, was a big victory for the firm.
Shopify Inc. (NYSE: SHOP): Statistical Information
- 52 Week Range: $305.30 – $1,285.19
- Average Volume:1,526,235
- Market Capital: $148.817B
- Forward Dividend and Yield: N/A (N/A)
Shopify Stock: Worth the Buy or not?
This year has given hefty profits to the company and the investors have also, therefore, gained profits from the same. Therefore, this year was a rewarding one for the company and its investors. The company has a stronghold and there are major prospects that it will maintain the glory that it has earned this year.
The views of the analysts on this stock however are quite varied. Not all analysts and investors are in favor of either keeping up the stock for long or buying it. The company shows no signs that it will slow down and e-commerce is a swiftly growing industry. Shopify will most probably maintain its earnings and grow them year by year if its pace stays the same as of now. If the investors go by this view, then Shopify emerges out as a perfect stock but some analysts have their view that there would be better stocks coming next year. There are many other stocks, which can give better profits and are available in a similar price range as that of Shopify. Therefore, an investor must look upon every characteristic and go through the complete analysis of the stock before making an investment or moving up to another stock.