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Shopify Reveals Multiple New Features At Virtual Reunite Event, Stock Now Up 95% YTD
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Shopify Reveals Multiple New Features At Virtual Reunite Event, Stock Now Up 95% YTD

Shopify (SHOP) has unveiled multiple new features at its virtual Reunite event, including Shopify Balance, a business account for merchants that offers a more flexible substitute to traditional banking.

This new feature will allow merchants to get immediate access to money from their Online sales, seamlessly access additional funding, pay their bills, receive discounts and cashback on corporate expenses and even withdraw cash from ATMs –  with no monthly fees, sign-up fees or minimum balance.

SHOP’s plan is to help merchants increase flexibility and better adapt to the current COVID-environment. For instance, Express allows restaurants and coffee shops to quickly set up an Online store front centered around a mobile experience. Gift Cards are now available to all merchants with a new Tipping feature, and Shopify’s POS (point-of-sale) software will be free until October, giving customers a touchless checkout experience on their mobile device. Meanwhile Shopify’s Local Pickup feature is now live with Curbside Pickup and Local Delivery features about to be introduced.

Shopify also revealed that it remains committed to investing $1B into its Shopify Fulfillment Network over the five years, as it first announced 11 months ago. This includes “Chuck”, SHOP’s autonomous warehouse robot that makes it easier for associates to pick up items, package them and get them ready to ship.

“None of the announcements had the same materiality as last year’s Shopify Fulfillment Network, but we believe the new offering further fills out SHOP’s portfolio of tools for merchants and should allow them to capture more of the SMB value-chain” cheered RBC Capital analyst Mark Mahaney.

Following the event, Mahaney reiterated his Buy rating on the stock with an $825 price target (6% upside potential). He also views the Facebook (FB) Shop announcement on May 19 and partnership with Shopify as a ‘nice win’ for both companies.

Shares rose 3% higher in Wednesday’s trading, bringing the stock’s year-to-date gain to 95%. Given the recent rally, the average analyst price target of $592 indicates downside potential of 24%, while the Hold analyst consensus breaks down into 6 recent buy ratings vs 15 hold ratings and 1 sell rating.(See SHOP stock analysis on TipRanks).

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