Shopify Stock Is Up 160% This Year. Here’s How It’s Taking On eBay And Amazon.


Topline: With its recent acquisition of a warehouse-robot startup, Canadian e-commerce company Shopify is ramping up efforts to expand its network of retailers, help them deliver products and compete with Amazon.

  • The company announced late on Monday that it would pay $450 million to acquire 6 River Systems, a leading provider of collaborative warehouse solutions such as robots and other software used to help fill retailers’ orders.
  • The deal, which consists of 60% in cash and 40% in company shares, will substantially improve Shopify’s fulfillment network by increasing the speed and reliability of warehouse operations as well as streamlining distribution services, the company said.
  • Shopify shares ($SHOP) have soared since its 2015 IPO, hitting record highs this year. The stock price has more than doubled, up 160% so far in 2019.
  • The company recently reported $362 million in revenue last quarter, up nearly 50% from the same period last year.
  • Earlier this year, Shopify passed eBay in terms of market capitalization—the companies are worth $40.3 billion and $34.7 billion, respectively—and will soon surpass eBay in total U.S. merchant sales volume, becoming the second-largest e-commerce platform, behind only Amazon, according to Baird analysts.
  • Amazon, meanwhile, has a market capitalization of $906 billion and reported $63.4 billion in revenue last quarter alone.


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Source: September 10, 2019