Can Shopify Stock Keep Climbing?
Shares of e-commerce specialist, Shopify (NYSE: SHOP) shot up on Thursday, Oct. 27. Investors were responding to a third-quarter earnings report that was far better than expected. The following day, shares of Shopify's largest competitor, Amazon (NASDAQ: AMZN), fell about 10% in response to a less-than-encouraging third-quarter earnings report.
Can Shopify overcome competition from Amazon and continue reporting results that push its stock price higher? A strong performance in the third quarter suggests the heavy investments the company is making in its fulfillment network are paying off as intended.
Despite climbing recently, shares of Shopify are still around 80% below the high watermark they set in 2021. The stock is tanking because instead of generating a profit in 2022, the company decided to invest heavily in its fulfillment network. To this end, the company acquired a logistics technology provider called Deliverr for $2.1 billion in May.
Source Fool.com
