Please ensure Javascript is enabled for purposes of website accessibility

Why Shopify Stock Jumped on Tuesday

By Daniel Sparks - Updated Apr 14, 2020 at 3:44PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The growth stock's sharp rebound continues.

What happened

Shares of e-commerce platform provider Shopify (SHOP 0.54%) jumped sharply on Tuesday. The stock was up about 12% as of 3 p.m. EDT today.

The stock's gain was likely driven primarily by a rise in the overall market, including outsize gains for many growth stocks like Shopify.

Shopify e-commerce platform on a smartphone, laptop, and tablet

Shopify's e-commerce platform. Image source: Shopify.

So what

Capturing optimism in the overall market on Tuesday, the S&P 500 was up about 3% at the time of this writing. The market's gain comes as sentiment about the United States' ability to get the coronavirus under control is improving. Daily new reported cases in the U.S. seem to have leveled off over the past week and have even declined for three days in a row. 

While many stocks are rising today, lots of growth stocks like Shopify seem to be rising faster than broader market indexes. While the stock has rebounded sharply recently, it's still trading nearly $100 below an all-time high of $593.89.

Now what

On April 1, Shopify provided a timely business update for investors as it deals with the impact of COVID-19. The company said its first-quarter revenue and adjusted operating income will likely be "within or ahead" of its previous guidance for the period. But the company withdrew its full-year financial outlook due to economic uncertainties.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Shopify Inc. Stock Quote
Shopify Inc.
$31.41 (0.54%) $0.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.