Shopify's stock is on a tear, highlighting the bright future of online e-commerce

Shares of e-commerce platform Shopify (NYSE: SHOP) have risen about 17% in the past five trading days , maintaining a steady 28% increase over the past month, rising to around $1,450 per share , well above expectations .

While there are multiple reasons for the stock’s rise , including the recent expansion of Shopify ’s Shop Pay payment system to all merchants on Facebook and Google and stronger-than-expected quarterly earnings reported by Shopify in late April , all the news seems to point to one conclusion:

The development prospects of independent e-commerce sites are widely optimistic.

As one of the world's most well-known independent website building platforms, Shopify has bucked the trend amid the global economic downturn caused by the new crown pneumonia epidemic. In the first quarter of 2021, Shopify's revenue doubled , and its adjusted earnings per share increased nearly 10 times over the previous year. It is expected that revenue growth this year will exceed 50%.

The American business magazine Forbes wrote an analysis saying that as Shopify continues to expand and optimize its platform business , such as payment systems , seller financing and site systems , this growth trend is likely to continue for a long time .

The article also stated that Shopify ’s current stock price is higher than its valuation, which to some extent represents that investors are optimistic about the innovative market for independent e-commerce sites .

What’s the future of Shopify?

Relevant forecast articles analyze that although offline physical consumption may gradually recover with the global popularization of the new crown vaccine , the growth of online e-commerce may slow down in the next few quarters.

However, the consumption habits developed during the epidemic will not change easily. Online e-commerce stands out in the information age with its irreplaceable convenience and diversity, as a shopping method that caters to consumers more, and is still a future development trend favored by the market.

In addition, e-commerce platforms such as Shopify have provided new online sales channels for small and micro businesses that have been severely affected by the epidemic, and continue to attract more sellers with advantages such as data security and business freedom.

Recently, Shopify has also been expanding its market through a series of actions, including expanding the scope of its one-click checkout service " Shop Pay " from Shopify merchants to all US merchants selling on Facebook or Google - even if the merchants do not use the Shopify platform to build their independent stations .

Facebook has more than 1.8 billion daily active users. For Shopify , this move undoubtedly provides a broader market for its payment services .

Shopify's stock price has risen by about 30% this year and nearly tripled in the past 12 months. The rising stock price trend shows the bright prospects of online e-commerce.

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