What: Shares of Shopify (NYSE:SHOP) popped 27% last month, according to S&P Capital IQ data. The cloud-based commerce platform has wasted no time in striking deals with several major social media and online retail companies since its May IPO, and investors are beginning to take notice.
So what: In June, Shopify's shares surged after it announced deals that would give its merchants the opportunity to sell products on Facebook (NASDAQ:FB) andPinterest via their new buy button features. Shopify built on that momentum last month, as the fast-moving company expanded its partnership with Facebook so as to give Shopify merchants the ability to showcase and sell their products in the new Shop section on Facebook Pages.
Even bigger news came later in September when Shopify announced that it was selected as the preferred migration provider for Amazon (NASDAQ:AMZN) Webstore merchants. Amazon will be advising the users of its Amazon Webstore software to move their online stores to Shopify, as the online retail giant plans to shut down its Webstore service by July 2016.
The icing on the cake came at the end of the month, when Shopify announced a partnership with Twitter (NYSE:TWTR) that will allow Shopify merchants to sell products directly on the popular messaging app via Twitter's new "Buy Now" buttons.
Now what: With these blockbuster deals, Shopify merchants can now enable buy buttons on Facebook, Pinterest, and Twitter. Having early access to the new direct buy features of these social media titans should help to further differentiate Shopify from its competitors and continue to make Shopify's software and back office systems a top choice for aspiring entrepreneurs.
In addition, Shopify's partnership with Amazon is a game changer, as it will give Shopify's customers the ability to list their products on Amazon.com and use Amazon's payments system and fulfillment services.
Shopify's goal is to "be the platform that allows merchants to sell wherever they have customers." In September, the hard-charging company took major steps toward realizing that ambitious aim. Investors bid up its shares sharply on the news, but if Shopify can continue to be a valuable partner for the major social media platforms and the mighty Amazon, much more gains may still lie ahead.