(CTN News) – Shopify’s (NYSE: SHOP) e-commerce software platform experienced a significant surge of 5.1% in its shares during the morning session. This boost can be attributed to the impressive $9.8 billion in online sales generated on Black Friday in the United States, as reported by Adobe (NASDAQ: ADBE) Analytics.
This figure represents a notable 7.5% increase compared to the previous year. The rise in consumer spending indicates a positive trend, suggesting that consumers are more willing to spend compared to the previous year.
This is particularly noteworthy considering the challenging economic conditions, such as high inflation and rising costs of essential items like groceries and gasoline, that were prevalent last year.
Shopify has reported an extraordinary Black Friday, achieving a remarkable $4.1 billion in global sales from its merchants. This represents a significant 22% increase compared to the previous year’s figures.
The sales reached an impressive peak of $4.2 million per minute on November 24, 2023. Among the most popular product categories were clothing, personal care, and jewelry. The leading countries in terms of sales were the U.S., U.K., and Canada.
The momentum is expected to continue into Cyber Monday (27th November 2023), as numerous consumers return to work but allocate some time during their day to make online purchases.
The outcome of Cyber Monday sales may have additional effects on e-commerce stocks. Following the initial surge, the shares settled at $73.58, reflecting a 4.4% increase compared to the previous closing price.
Is it the right moment to purchase Shopify?
Shopify’s shares have shown some volatility in the market, with 33 moves greater than 5% over the past year. The most recent significant move occurred 25 days ago when the stock gained 10.6%. This increase was attributed to the company’s third-quarter results, which surpassed Wall Street’s revenue expectations.
The positive performance was driven by better-than-expected gross merchandise volume and gross payments volume. Additionally, earnings per share exceeded estimates, and there was a notable improvement in gross margin.
Notably, Shopify’s free cash flow generation for this quarter surpassed analysts’ estimates by a significant margin, reaching $276 million compared to the consensus of $193 million.
Shopify has recently introduced the Retail Plan, a new product aimed at assisting traditional retailers in managing payments and establishing a straightforward online presence.
In summary, this quarter has been highly favorable and is expected to bring satisfaction to shareholders.
Since the start of the year, Shopify’s stock has surged by an impressive 106%. Those who invested $1,000 in Shopify shares five years ago would now witness their investment grow to a remarkable $5,092.