What happened
Shares of Shopify (SHOP 1.25%) were trading higher today on seemingly no company-related news. Investors are likely continuing their positive sentiment toward the e-commerce platform company as businesses continue to rely on Shopify to sell their goods and services online during the pandemic.
The tech stock was up by as much as 8.4% today and had gained 6.7% as of 1:54 p.m. EST.
So what
Shopify's stock has surged this year as lockdowns and social distancing pummeled in-store shopping, leaving many businesses to turn to e-commerce sales to sell their goods and services. Investors followed them to Shopify and have pushed the company's share price up 195% this year.
Image source: Getty Images.
The company's share price shot up 18% last month after Shopify released its third-quarter earnings report on Oct. 29. Revenue spiked 96% in the quarter, thanks in part to a 48% jump in the company's subscription solutions segment.
Speaking about the company's growth in the quarter, Shopify CFO Amy Shapero said: "The pandemic has fast-tracked commerce to digital domains, and there is incredible demand on both the merchant and consumer sides to enhance the commerce experience. Shopify is in a unique position to help entrepreneurs in this emerging landscape."
Now what
Investors may be continuing their optimism for Shopify's stock today because, even with newly approved vaccines, the coronavirus pandemic continues to rage on. Some states and countries are returning to strict lockdowns, which means that many businesses are still very reliant on e-commerce sales. All of which means that demand for Shopify's platform will likely be strong at least until the pandemic is fully in the rearview mirror.
