Shares of Shopify (NYSE:SHOP) climbed 5.4% on Monday after the online retail platform reported a surge in Black Friday sales.
More than 1 million merchants in 175 countries generated $2.4 billion in Black Friday sales on Shopify's platform. That represented a staggering 75% year-over-year increase.
In a statement released on Nov. 30, Harley Finkelstein, president of Shopify, said:
With more consumers than ever shopping online this year, we anticipate this weekend being one of the biggest e-commerce events in history, as consumers vote with their wallets and support the independent and direct-to-consumer businesses they love.
Shopify provides the tools entrepreneurs need to start and grow online businesses. Merchants have flocked to its platform during the coronavirus pandemic, as store closures and social distancing measures drove many retailers to shift their operations to online channels.
Online sales have helped to keep many of these retailers afloat during the COVID-19 crisis. With Shopify serving as their trusted technology partner, the e-commerce star stands to benefit from its continued success. Sophisticated investors know this, and they bid Shopify's stock up on Monday in anticipation of its strong growth this holiday shopping season and in the years that follow.