- NYSE: SHOP has bounced by nearly 7% on Wednesday, but still remains well below the peak.
- Shopfiy Inc. has been hurt by news that a coronavirus vaccine is within reach.
- Online shopping is set to extend even when the full return to normal.
No virus, no growth for online shopping? Not so fast. The negative mood around Shopify Inc (NYSE: SHOP) has temporarily ended with a significant bounce of 6.93% or $61.42 on Tuesday. However, there may be additional room for growth.
The Ottawa, Canada-based e-commerce platform has been one of the winners of the COVID-19 era. Confined to their homes – or just unwilling to risk going outside, many people expanded their online shopping. Retail behemoth Amazon is the highest-profile winner of this monumental change, but have also been gaining ground.
SHOP stock forecast
When Pfizer and BioNTech announced that their covid vaccine candidate has an efficacy rate of 90% – the world cheered. Shares of airlines and travel firms leaped, while the companies used at home like Zoom and Shopify saw their shares falling.
However, the recent recovery is a reminder that there is still room for growth for online companies. The pandemic is still from being over. US hospitalizations have hit a new peak above 65,000 and cases topped 144,00 daily in Wednesday's report. Completing the verification process of the immunization candidate takes time – and so does distribution.
While citizens of the world would likely want to return to travel once they have received the vaccine, their consumption habits at home are unlikely to change so fast. Once they have created users on sites powered by Shopify, they are unlikely to abandon their shopping carts so quickly.
Overall, there is room for rises after the recent downfall.
SHOP stock news
NYSE: SHOP is changing hands at $953.98 in Thursday's pre-market trade, some 0.72% above Wednesday's closing price. That shows that the bounce was probably not a one-off. Support awaits at $885.76, Tuesday's low. Resistance is at $1,000, a round number.
See Pfizer's success promising for three other efforts, rally may have only just begun
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