Why Is Shopify Stock Going Up
Source: iStock

What's Behind Shopify Stock's Upward Climb?

By

Updated

On Sept. 29, Shopify stock rose about 6 percent, likely as a result of investors accumulating the stock in preparation for a second wave of COVID-19. There was no company-specific news that drove the stock up.

Article continues below advertisement
Why Is Shopify Stock Going Up
Source: Pixabay

What is Shopify?

Shopify is a Canada-based multinational e-commerce company. It was founded in 2006 by Tobias Lütke, Daniel Weinand, and Scott Lake. The commerce platform enables anyone to create an online store and sell their products. As of June 2019, Shopify had more than 1 million businesses in about 175 countries using its platform, with a total gross merchandise volume of more than $41.1 billion in 2018. 

Article continues below advertisement

Shopify stock news

Today, Wedbush analyst Ygal Arounian upgraded Shopify stock to “outperform” from “neutral.” The analyst also increased his target price on the stock from $998 to $1,300. According to The Fly, “After doing a deep dive on Shopify Fulfillment Network and Shopify POS, Arounian believes the company is at the early stages of significant merchant, gross merchandise volume, and revenue growth stemming from the shift into a well-built retail operating system.”

Article continues below advertisement

Shopify security breach

Last week, Shopify announced a data breach after two employees stole customer data. The company said that fewer than 200 merchants were impacted. The exposed data involved customers' names, addresses, emails, and purchases. However, the company said the individuals were not able to gain access to credit card information or other sensitive personal information. Shopify revealed that it had notified the impacted merchants and was working with them to resolve the problem.

What is Shopify's stock price today?

Shopify stock was up about 1.8 percent at $1,044.00 in premarket trading today as of this article's writing. The stock rose 6.1 percent on Sept. 29 and closed at $1,025.70 with a market capitalization of $124.8 billion. Shopify stock has risen by 11.6 percent in the last five days and 230.5 percent in the last year.

Article continues below advertisement

Shopify stock is trading 10.6 percent below its 52-week high of $1,146.91 and 263.6 percent above its 52-week low of $282.08. Year-to-date, the stock had risen by 158 percent as of yesterday. 

Shopify stock forecast

Currently, analysts' stock price forecast for Shopify is $1,099.72, which suggests a 7.2 percent upside. The highest target price of $1,400 implies a 36.5 percent upside, while the lowest target price of $600 suggests a 41.5 percent downside. Among the 29 Wall Street analysts tracking Shopify, 18 recommend “buy,” ten recommend “hold,” and one recommends “sell.”

Advertisement

More From Market Realist