Shares of e-commerce specialist Shopify (NYSE:SHOP) soared on Wednesday, finishing the trading day up 9.5%.
The stock's gain was probably fueled by a combination of a bullish day for the overall stock market and an analyst's reiterated overweight rating for the stock.
Market indices rose sharply on Monday, driving many tech stocks higher -- especially growth tech stocks like Shopify.
Also helping fuel Shopify stock's gain may have been commentary from Wells Fargo analyst Timothy Willi. Despite expectations for a deteriorating economic outlook, Willi maintained an overweight rating for Shopify shares. While the analyst did lower his 12-month price target for the stock from $600 to $500 to reflect macroeconomic headwinds, investors have arguably already priced in a more challenging operating environment during the coronavirus pandemic.
The analyst's price target implies 21% upside from Shopify's current stock price of $414.51.
Last week, Shopify shares fell sharply when the company suspended its full-year financial outlook. Management said there's uncertainty about how the year will play out but also noted that it expects to meet or exceed its first-quarter guidance range for both revenue and operating income.