🎁 The “Shopify”cation Of The Holiday Season?

Worsening pandemic means more consumers changing their preferences and shopping online.

Hey Global Investor, here’s what you need to know before the US markets open.

Market Snapshot 📈

S&P 500 (Friday Close) 3,557.54 −24.33 (0.68%)

NASDAQ (Friday Close) 11,854.97 −49.74 (0.42%)

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NIFTY 50 (Today’s Close) 12,926.45 +67.40 (0.52%)

USDINR (5 PM IST) 74.03 (1 Year +3.24%)

The “Shopify”cation Of The Holiday Season?

Worsening pandemic means more consumers changing their preferences and shopping online. That’s a shot in the arm for Shopify Inc.

Background: Shopify started in 2004, helping small businesses build websites to sell directly to customers. Today, it offers end to end sales channels, marketing tools, data analytics, and assistance with shipping, payments, and capital needs to clients.

The Ottawa-based company has partnered with platforms such as Amazon, Facebook, Instagram, eBay, and TikTok.

Shopify’s product suite’s subscriptions start at $29 a month, whereas Shopify Plus, an enterprise offering, costs $2000. Businesses that got started on Shopify’s basic services eventually graduated to its enterprise offerings.

What is Happening? AHoliday season for Shopify typically involves helping several small retailers navigate the shopping rush. However, this year the task is more amplified.

For instance, Schwinn, Chipotle, and Heinz have turned to Shopify for the first time. Chipotle created a virtual farmers’ market on the platform while Canada-based grocery chain Loblaws used it to sell meal kits. These subscribers of Shopify Plus maybe a small percentage of Shopify’s overall client base, but it is the fastest-growing segment in terms of volume.

Shopify increasingly views itself as a retail operating system instead of a mere e-commerce company.  With Black Friday and Cyber Monday spending expected to grow ~40% over last year, to a combined $23B in consumer spending, the company is gearing up to meet demand through a network of warehouses.

There certainly is a large number of pandemic-weary small businesses pinning their hopes on Shopify’s ability to spread some much-needed holiday cheer and magic.

Market Reaction: Shopify almost doubled its revenue in Q3 to $767M. Its stock is up 143% YTD, closing on Friday at $988.51, up 2.25%.

Company Snapshot 📈

SHOP $988.51 +21.74 (+2.25%)

Analyst Rating (34 Ratings) BUY 44%  HOLD 50%  SELL 6%

Newsworthy 📰

  • Exempted: California gives Tesla ‘essential workforce’ exemption from new Covid-19 health orders (TSLA -1.93%)
  • Reunion: BuzzFeed acquires HuffPost from Verizon, reuniting CEO Jonah Peretti with website he co-founded (VZ -0.28%)
  • Getting There: Oxford-AstraZeneca Covid vaccine shows an average 70% effectiveness in preventing the virus (AZN +2.35%)

Later Today 🕒

  • 6.00 PM IST: Chicago Fed national activity index
  • Before Market Open: Autohome Inc Earnings (ATHM)
  • After Market Close: Ambarella Inc Earnings (AMBA)

Fun Fact of The Day 🌞

Iron is the sixth most common element in the universe

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