Why Did $SHOP Explode Today?

This morning, on, there was an increase in the search volume for $SHOP, Shopify Inc. What happened?

Shopify is a subscription-backed, cloud-based e-commerce platform that connects users from all over the world. The recent success of Shopify on the stock market is highly attributable to the persistence of COVID-19. Within the past year alone, the e-commerce giant has seen its stock price rise by more than 225%. This meteoric rise has firmly placed Shopify as the second-leading e-commerce destination in the United States, second only to none other than $AMZN, Inc. However, Shopify should be intriguing to investors because Shopify’s business model operates in a completely different way than Amazon.

On Amazon, consumers casually browse the immense variety of products that are offered and order it directly from Amazon, avoiding the variety of intermediaries that could compete with its profit margins. On the other hand, Shopify attempts to simplify the future of retail by allowing individuals to set up their own “brick and mortar” store without all the brick and mortar. Who would’ve thought 40+ years ago that you could offer people a digital storefront and rake in billions in profit? Not many people. By offering average people the opportunity to set up their own businesses on an e-commerce platform, Shopify is transforming how consumers shop on a daily basis and giving millions the opportunity to become an entrepreneur at the same time. Putting the merchant first, rather than the customer, has been the key to Shopify’s recent success. Despite being highly valued at over $1200 per share, Shopify is clearly going to be a successful company for a long time, and is definitely worth of the bullish reviews it has received.

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