Shares of the e-commerce platform company Shopify (NYSE:SHOP) popped by as much as 5.7% during today's trading. While there wasn't any company-specific news that was driving the stock up, investors are likely snatching up more shares in some tech stocks as ongoing coronavirus concerns could spur more e-commerce growth.
As of 2:08 p.m. EDT, Shopify's stock was up 5.4%.
Investors have flocked to technology stocks during the pandemic, looking for companies with businesses that can grow as people spend more time at home. Shopify has been one such stock because the company's e-commerce platform allows businesses of all sizes to sell goods and services to online shoppers.
The surge in demand for online shopping helped drive Shopify's sales up 97% in the second quarter (reported July 29) and generated non-GAAP (adjusted) earnings per share of $1.05 -- up from $0.10 per share in the year-ago quarter.
Investors may be expecting even more demand for Shopify's e-commerce services as cases of the coronavirus could climb during the fall and winter seasons. Including today's jump, Shopify's stock is up 156% year to date.
Tech stocks took a hit earlier this month as some investors sold off their shares to take the gains they'd made over the past few months. But the idea that cooler months could bring an uptick in virus cases has brought some investors back to the tech sector. All of this means that Shopify's stock could continue to experience some price swings as the market continues to process new information about the pandemic.