Shares of Coupa Software (NASDAQ:COUP) skyrocketed this morning after the company announced that Walmart is expanding its use of Coupa's software.
The tech stock was up by as much as 13% this morning and had gained 11.1% as of 11:04 a.m. EST.
Walmart already uses Coupa's software to optimize how it sources third-party spending in North America, but the retail giant said today that it will expand its use of Coupa's software "to enhance Walmart's visibility into its global spend" and to "help drive savings throughout the procurement supply chain."
"Today, we have multiple, complex procurement systems across our business," Walmart's chief procurement officer, DK Singh, said in a press release. "Coupa's unique technology solution will help us optimize and harmonize our source-to-pay processes, providing cost savings, a simplified system and greater ease of use."
Investors were clearly happy to see that Coupa was able to expand its business relationship with Walmart and they pushed up the company's share price as a result.
Stock prices don't always rise on news like this, but investors may be especially optimistic about Coupa snagging more of Walmart's business right now because investors have been particularly bullish on cloud platform companies lately. Cloud platform companies like Coupa are benefiting as retail companies adjust strategies during the pandemic to expand their businesses and make them more efficient as e-commerce demand has risen.