Shopify announced that its Black Friday sales reached $2.4 billion this year, reporting stellar growth of about 75% from last year. The e-commerce giant’s Black Friday sales came from the independent and direct-to-consumer brands on the platform. Shares closed 1.7% higher on Friday and have rallied by over 160% year-to-date.
Shopify (SHOP) said that product categories including apparel and accessories, health and beauty, and home and garden drove Black Friday sales this year. Of the company’s Black Friday sales, 67% were done through mobile, while the rest were made on a desktop, compared to 69% sales on mobile and 31% sales on desktop in 2019.
Shopify’s president, Harley Finkelstein, said, “In just a single day, merchants around the world produced more than 80% of the sales of the entire holiday shopping weekend last year.” He added that “With more consumers than ever shopping online this year, we anticipate this weekend being one of the biggest e-commerce events in history, as consumers vote with their wallets and support the independent and direct-to-consumer businesses they love.” (See SHOP stock analysis on TipRanks)
On Nov. 19, Jefferies analyst Samad Samana upgraded Shopify stock to Buy from Hold, and lifted his price target from $1,150 to $1,250 (20.6% upside potential), citing strong online shopping growth. In a note to investors, Samana wrote, “We have a greater appreciation for SHOP’s ability to deliver robust growth for the next several years and reach about $10 billion of revenue in 2025, powered by a structural pull-forward in e-commerce activity and better monetization of GMV [gross merchandise value].” He added, “We expect SHOP to sustain strong GMV growth in the fourth quarter, powered by holiday shopping.”
Meanwhile, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 10 Buys, 9 Holds and 1 Sell. The average price target stands at $1,168.12 and implies upside potential of about 12.7% to current levels.
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