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Wall Street has witnessed optimism following the CPI data release this week. Stock prices of many tech companies increased significantly in a day. The stock sector has been under performing and showing volatility this year. Many factors like interest rates hike, supply chain issues, inflation, global recession and war emerged geopolitical tensions. The slowdown market did not spare Shopify (SHOP) stock—once one among the significant performing companies.
On Thursday, the United States Bureau of Labor Statistics released consumer price index (CPI) data. The report has brought the statistics better than estimates and led to optimism among the investors. This resulted in stock prices momentarily shooting up, like the software company Nvidia (NVDA) stock surged up to 9.5% on the day, while Snowflake and Shopify stock were up by over 15% in a day.
Shopify Finding Ground
At the press time, Shopify stock is trading at 39.44 USD with slightly more than 8% rise in trading price in a day. The stock price is doing well given the near past time frame as it has had more than 50% raise in the last month with approx 11% in the last six months.
On the contrary, in year-to-date and year-on-year Shopify stock has lost more than 70% of its value.
The e-commerce company launched its initial public offering (IPO) in 2015 and remained one of the fastest companies in Canada. However, for the last 12 months, Shopify stock has lost a significant amount of trading price. Currently the company sits at an overall market capitalization of 56.44 billion USD.
Significant Performance in the Past
The pandemic has given an unprecedented boost to the companies belonging to several sectors as the time has brought a paradigm shift in multiple terms. Most businesses went online or prepared to go online and ultimately received significant results. Shopify remained one among those companies that got thrust during the similar timeframe.
However the aforementioned reasons made heavy impacts on the company and eventually hurt its stock price. Shopify and other e-commerce platforms are expected to witness growth in the long term.
According to research reports, the United States region alone is expected to see an yearly growth of 12% in e-commerce sales with approx 1.7 trillion USD by the year 2026. Given the estimated growth, Shopify is likely to expand given quite a space within the room.
Analysts keeping watch of Shopify stock say the company could achieve the sales target with 5.84 billion USD for this year while 7.8 billion USD in 2023. For the next 12 months, analysts believe Shopify stock price could double from here.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
