Driven by spurt in online buying, Shopify Inc. ( SHOP Quick Quote SHOP - Free Report) announced that brands on its platform witnessed a 76% year-over-year surge in sales on Black Friday/Cyber Monday 2020 weekend, reaching $5.1 billion. The company had generated sales of $2.4 billion alone on Black Friday. Shopify noted that United States was among the top contributors along with the U.K. and Canada. Sales in Japan, Italy, Germany and the U.K. on the Shopify platform registered triple-digit growth on a year-over-year basis over the Black Friday/Cyber Monday weekend. New York was one of the top yielding cities, along with London and Los Angeles, added the company. Also, the company noted that mobile sales on Black Friday/Cyber Monday 2020 weekend were 67% of the total sales compared with 68% registered in the same period last year. Shopify further added that holiday shopping commenced early this year with daily total sales reflecting a growing trend 19 days before Cyber Monday. Sales for the week leading up to Cyber Monday (Nov 23 through Nov 30) on Shopify’s platform soared 84% year over year, added the company. Robust sales are likely to boost investor optimism and instil confidence in the stock. Markedly, shares of Shopify have rallied 168.9% compared with the industry’s increase of 35.8%. Shopify also highlighted its commitment to reducing carbon emissions. The company announced that it offset carbon emissions for all orders on its platform on Black Friday/Cyber Monday weekend. The company offset 62,000 tonnes of carbon emission through this endeavor. Impressive Increase in Number of Consumers Shopify added that the number of consumers, who purchased from the independent and direct-to-consumer brands on its platform, witnessed a 50% increase year over year. Shopify’s sales data for Black Friday/Cyber Monday weekend is based on data from more than one million merchants across 175 countries registered on its platform. Over the Black Friday/Cyber Monday weekend, average spend per order by consumers was $89.20. In the United States, consumers spent an average of $92.80 per order. In comparison, consumers in Japan spent an average of $106.40 per order, while consumers in Australia and Canada spent $105.50 and $103.00, respectively. Apparel and accessories were the top sold categories on the Shopify platform followed by health and beauty and home and garden categories. Rise in Online Shopping Bodes Well Retail sector was undergoing major transformation in the recent years as online shopping started to gain significant ground compared with in-store buying. E-commerce received a massive boost due to the coronavirus crisis and the subsequent shelter in place guidelines imposed all over the world, resulting is massive online shopping including essentials. The increasing online purchasing trend bodes well for Shopify. As a result, Shopify is witnessing increases in the number of merchants joining its platform as the retail environment alters drastically. The company is working on adding more features and functionalities to its platform to support merchants to expand their businesses. The roll out of Shopify Payments, Shipping and Capital have simplified the process payments along with shipping of products and securing of financing for merchants, respectively. Also, addition of “multi-currency feature” that facilitates merchants to sell products in several international currencies while receiving payments in their respective local currency, is likely to attract more merchant to the Shopify Plus platform. Zacks Rank & Other Key Picks At present, Shopify carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader technology sector are Cirrus Logic ( CRUS Quick Quote CRUS - Free Report) , Qorvo ( QRVO Quick Quote QRVO - Free Report) and Avnet ( AVT Quick Quote AVT - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Long-term earnings growth rate for Cirrus Logic, Qorvo and Avnet is pegged at 7.1%, 15.8% and 19%, respectively. Zacks Names “Single Best Pick to Double” From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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