Shopify (NYSE: SHOP) shares jumped premarket on Monday after it reported record-setting Black Friday sales over the weekend.
YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The e-commerce platform’s share price has rallied more than 7% premarket, hitting $$39.48 per share. However, the stock is down more than 73% in 2022, as it has suffered following the end of pandemic restrictions.
Still, the Black Friday results give investors a reason to be positive on the stock at the start of this week, despite the more challenging overall economic environment. Although US inflation has eased slightly in recent months, it is still elevated, while in Europe, it is still at highs, stretching consumer wallets and providing a reason for bullish investors to continue to be cautious.
Shopify reported sales of $3.36 billion from the beginning of Black Friday in New Zealand through the end of Black Friday in California, representing a 17% increase compared to last year and a 19% rise on a constant currency basis.
At the peak, merchants on the Shopify platform saw sales of $3.5 million per minute, while the top-selling countries where shoppers made purchases were the United States, United Kingdom, and Canada.
In addition, the company said the average cart price was $102.31, while cross-border orders worldwide as a percentage of total orders came in at 15%.
“Black Friday Cyber Monday has grown into a full-on shopping season. The weekend that started it all is still one of the biggest commerce events of the year, and our merchants have broken Black Friday sales records again,” commented Harley Finkelstein, President of Shopify.
Earlier this month, Moffett Nathanson analysts initiated Shopify with a Market Perform rating and $30 per share price target, telling investors they do not subscribe to the bear case of peak e-commerce penetration and believe growth will continue at the historical pace.
According to TipRanks, out of 16 analyst ratings, eight see Shopify as a Buy, and eight see the stock as a Hold, with the average price target at $41.21, representing a potential 12% upside from Friday’s closing price.