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| Shopify says it is seeing booming sales during this pandemic as more people shop online and more businesses start to sell there, too. (CBC) |
Ottawa-based e-commerce firm sees booming demand as more companies move to sell online
Shares in Canadian e-commerce firm Shopify Inc. surged on Wednesday after the company said more and more businesses are signing up for its online selling platform during the COVID-19 pandemic.
The Ottawa-based company reports in U.S. dollars and says it took in $470 million in revenue in the first three months of 2020. That’s up from $320 million in the same period a year ago.
Analysts who cover the company were expecting revenue to come in at around $442 million.
Shopify’s shares have been one of the few successes on the Toronto Stock Exchange of late, with the value of the company more than doubling since the start of April. Shares in the company gained almost seven per cent on the TSX on Wednesday to close at $1,034 a share.
At that price, the company is worth just over $121 billion. That’s enough to make Shopify the most valuable company in Canada, just ahead of the Royal Bank of Canada, which inched down 26 cents on Wednesday to close at $84.62 a share, for a total stock market value of $120.4 billion.
Shopify CEO Tobi Lutke says the company is doing everything it can to help businesses start selling online to stay afloat.
“The spread of COVID-19 is going to be a tough time for all entrepreneurs,” he said in a statement. “We are working as fast as we can to support our merchants by re-tooling our products to help them adapt to this new reality.”
Source: Pete Evans | CBC News
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