Expand / Collapse search
Watch TV
Menu

Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions.  Legal Statement.

This material may not be published, broadcast, rewritten, or redistributed. ©2024 FOX News Network, LLC. All rights reserved. FAQ - New Privacy Policy

Markets
Published | Updated

Why Shopify Stock Gained 11% in November

What happened

Online selling platform Shopify (NYSE: SHOP) outpaced the market last month by gaining 11% compared to a 1.8% boost in the S&P 500, according to data provided by S&P Global Market Intelligence.

The rally added to a good year for Shopify investors. The volatile stock is up close to 50% with just a few weeks left in 2018.

So what

Shopify's November jump wasn't tied to any company-specific news. Instead, the stock got caught up in the volatility in the wider tech world last month. The rapidly shifting investor sentiment produced a few sharp sell-offs during the month, but Shopify ultimately recovered along with the broader tech segment.

Now what

Shopify's most recent earnings report, in late October, showed that its platform has plenty of room for growth as more retailing spending moves online. Sales jumped 58% and the company moved $10 billion worth of products through its platform.

The fourth quarter represents a seasonally strong period for the company, and CEO Tobias Lutke and his team are predicting sales to range between $315 million and $325 million compared to the prior quarter's $270 million. Given its focus on growth today, that result would still translate into an operating loss for the year, but Shopify is happy to book red ink today in exchange for firming up its market position in this massive industry.

Find out why Shopify is one of the 10 best stocks to buy now

Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. (In fact, the newsletter they run, Motley Fool Stock Advisor, has tripled the market!*)

Tom and David just revealed their ten top stock picks for investors to buy right now. Shopify is on the list -- but there are nine others you may be overlooking.

Click here to get access to the full list!

*Stock Advisor returns as of November 14, 2018

Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify. The Motley Fool has a disclosure policy.