What happened
Actions of Shopify (NYSE: SHOP) It jumped 7% to a new closing high of $ 1,053.59 on Wednesday, following the launch of the successful second quarter results from the trading platform.
And that
The coronavirus pandemic and related social distancing patterns are driving more people to shop online than ever. The companies, many of which were forced to close during the COVID-19 crisis, are quick to migrate their operations to the Internet.
And Shopify is helping them do it.
“The world is changing rapidly,” CEO Tobi Lutke said in a press release. “With the rapid shift to online commerce, the massive disruption to mainstream employment, and the growing belief that opportunity must be more evenly distributed, entrepreneurship has never been so important.”
Shopify shares rose to a record high on Wednesday as investors applauded its impressive second-quarter results. Image source: Getty Images.
Merchants, in turn, are flocking to the Shopify platform. New store creations increased 71% sequentially. And these stores are collectively generating much higher sales. Shopify’s second-quarter gross merchandise volume (GMV), essentially the total amount of sales merchants made on its platform, shot up 119% year-over-year to $ 30.1 billion. Shopify’s revenue, meanwhile, increased 97%, to $ 714.3 million.
In total, Shopify’s adjusted net income reached $ 129.4 million, or $ 1.05 per share, up from $ 10.7 million, or $ 0.10 per share, in the prior-year period.
Now what
Shopify’s rise has been impressive. After today’s earnings, its shares have grown 165% year-to-date, 213% last year and 4,000% since its 2015 initial public offering (IPO). With powerful trends such as global growth in e-commerce and With the entrepreneurial spirit driving its expansion, Shopify appears to be poised to deliver even more profit to investors for years to come.
