What happened
Shares of Shopify (SHOP -2.37%) got crushed on Monday, tumbling as much as 16.3%. As of 1:03 p.m., the stock was still down 11.6%.
The catalyst that sent the e-commerce tools provider plunging was word that competition is ramping up in the online retail space.
So what
A report published over the weekend highlights plans by Alphabet's (GOOGL 0.55%) (GOOG 0.74%) Google to make a bigger push into e-commerce, according to The Street.
Image source: Getty Images.
Late last week, Google announced Last Mile Fleet Solutions, a set of tools designed to help merchants ensure that deliveries are "fast, reliable, and low cost." The application helps fleet operators manage the delivery experience from order to doorstep, while also optimizing the shipment at every stage of the process. This includes capturing valid delivery addresses, route planning, efficient driver navigation, tracking the progress of shipments, and analyzing overall fleet performance.
The solution is built atop the On-demand Rides & Deliveries solution on the Google Maps Platform, which helps ride-hailing and on-demand delivery operators with a host of tools, including driver dispatch, in-app navigation, and real-time delivery status, among others.
By building on its existing platform, Google is expanding the addressable market it serves, making further inroads into the growing field of e-commerce shipment and delivery. In a blog post, Google cited data that suggests "e-commerce shipments are on track to double by 2026 and 90% of U.S. consumers expect free two-to-three-day shipping."
Now what
It's worth noting that some financial data feeds currently disagree about Shopify's closing price on Friday. As a result, while some sources are showing Shopify stock essentially flat for the day, others show the stock down by more than 10%.
Shopify stock surged last week. After closing at $512.55 on Monday, the software-as-a-service (SaaS) stock ended the week at $780, a stunning rise of more than 52% over four market days. Given its swift rise, it's also likely there's some profit-taking at work today.
Yet, even after last week's dizzying ascent, Shopify stock is still down nearly 60% from its highs reached last November. For investors who have been looking for an entry point, Shopify's stock price today might look like a steal five years from now.
