Technology

11/28/2023, 8:00 AM

Shopify Reports Record Revenue on Black Friday

On Monday, investors' interest is directed towards the stock of Shopify.

Shopify Shares Take Center Stage for Investors on Monday. At the New York Stock Exchange, they briefly rose by 5.2 percent to 74.01 US dollars. The provider of software for online stores announced an impressive sales record of 4.1 billion dollars on "Black Friday". For Christian Salis, an analyst at Hauck Aufhäuser Investment Banking, this highlights the immense purchasing interest of US consumers. On Thanksgiving Day alone, over 5.5 billion US dollars were spent, followed by a rise in online sales on the subsequent "Black Friday," which exceeded expectations. Despite some euphoric reactions, data on the retail business on the so-called Black Friday remain below expectations.

According to Mastercard SpendingPulse, in-store sales lagged behind online purchases on this special day. UBS analysts agree with this assessment and see the overall sales increase of 2.5 percent on Black Friday as early evidence of a moderate Christmas shopping season. Despite global expectations being exceeded and a 9 percent sales growth in the USA, it cannot be denied that online shopping is gaining in importance.

However, this seems to be advantageous for Shopify. With a solid business model and a strong customer base, the company has been able to successfully establish itself in the market for e-commerce solutions. The latest figures reaffirm that Shopify is an attractive investment for investors looking for strong returns. In addition to record sales on "Black Friday," the company also benefited from the increasing popularity of online shopping, especially in the current time of the pandemic.

"Yet Christian Salis Warns Against Excessively Blind Optimism. Despite impressive growth in numbers, Shopify operates in a highly competitive market where large competitors such as Amazon and Alibaba are also active. But, unlike these, Shopify does not operate as an online shop itself but offers software solutions for businesses to enhance their online presence. This focus and the continuous improvement of services give the company a competitive advantage."

"Although Black Friday sales promise a successful year-end for Shopify, it remains to be seen how the figures for the entire Christmas shopping season will develop. In any case, Shopify is a company worth keeping an eye on, as it seems to be holding its ground well despite current market uncertainties."

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