Why Shopify Stock Jumped 13% in June
Shares of e-commerce company (NYSE: SHOP) gained 13% in June according to data provided by S&P Global Market Intelligence. It's still benefiting from investor momentum after a positive first-quarter report in May as well as general investor enthusiasm about the stock market.
Shopify had a magnificent run as e-commerce accelerated early in the pandemic, but it was too much too fast. It ran into serious problems last year as growth slowed down and it had built up too much to meet fading demand.
But Shopify is demonstrating that it's more than a pandemic sensation. It's showing signs it has a solid business model, with serious leaders that are actively working to make the company better. Instead of holding onto infrastructure that's bleeding cash, management is selling off its logistics network despite just getting started with growing it. That's a great signal for investors that management's paying attention to Shopify's core business. It's looking to stay efficient and get back to stronger profits, rather than pour money into endeavors that could ultimately undermine the overall business and generate shareholder disillusion.
Source Fool.com
Shopify Inc Stock
Shopify Inc is currently one of the favorites of our community with 6 Buy predictions and no Sell predictions.
With a target price of 70 € there is a slightly positive potential of 10.25% for Shopify Inc compared to the current price of 63.49 €.
