Why Shopify, MercadoLibre, and Etsy Rallied Today
Shares of e-commerce companies Shopify (NYSE: SHOP), MercadoLibre (NASDAQ: MELI), and Etsy (NASDAQ: ETSY) rose today, rocketing 12.1%, 7.6%, and 6% higher, respectively, as of the end of trading.
There was some individual company news yesterday and today, but the positive day more likely had to do with a broader rally in the markets, especially beaten-down technology stocks that were among the first to get sold off since last November.
Yesterday, YouTube announced a partnership with Shopify, whereby content creators on YouTube can seamlessly integrate e-commerce into their channels. The thinking here is that online creators are gaining greater influence over customer buy decisions when it comes to fashion; therefore, eliminating friction between seeing a YouTube video and buying the discussed item is a huge opportunity. Given that Shopify's platform can help influencers sell directly to consumers while offering inventory management and payments solutions, the tie-up seems like it makes a lot of sense. And given that YouTube is the biggest online video platform in the world, the new tie-up could be a boon to Shopify.
Source Fool.com
