Shopify reported $5 billion in Black Friday gross merchandise volume, up 22% year-over-year, in line with last year's growth. Amid a big run-up in 2024, Shopify stock fell in midday trading on Monday.
"While we believe Shopify's Black Friday performance was strong being up in excess of 20%, we will continue to track how Shopify's merchants' sales perform throughout the rest of today (Cyber Monday) and overall Cyber Week, and how they compare to the broader e-commerce landscape," said Truist analyst Terry Tillman in a report. "For context, last year during Cyber Week, Shopify reported $9.3 billion in merchant sales, representing 24% year-over-year growth."
On the stock market today, Shopify stock fell 3% to near 112 in midday trading.
"We see Shopify's Black Friday GMV of $5 billion putting the company on track to achieve fourth quarter GMV expectations ($92.8 billion)," said Deutsche Bank analyst Bhavin Shah in a report. "Based on current consensus estimates, Black Friday would comprise of 5.4% of the quarter's GMV, compared to the prior two years of 5.5% which we see as reasonable."
As of Friday's market close, Shopify stock had advanced 48% in 2024, hitting their best levels since January 2022. Most of the gain in Shopify stock came after third quarter results topped expectations.
Also, SHOP stock is extended from a buy zone.
Shopify stock holds a Composite Rating of 99 out of a best-possible 99, according to IBD Stock Checkup.
Separately, e-commerce giant Amazon.com rose a fraction early Monday. Amazon stock closed Friday at 207.89, within a buy zone.
Shopify sets up e-commerce websites for small businesses, and partners with others to handle digital payments and shipping. It recently announced expanded partnerships with PayPal Holdings and Google-parent Alphabet's YouTube.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
