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Why Shopify (TSX:SHOP) Stock Soared 10% This Week

Are you an investor suffering from coronavirus news fatigue? Then keep reading for some optimistic news.

Shopify (TSX:SHOP)(NYSE:SHOP) is soaring in 2020. The coronavirus pandemic is driving this. It has shifted how consumers interact with the world. It has transformed the shopping experience and rapidly accelerated e-commerce growth. All of this plays into the hands of Shopify. Shopify stock rallied 12% this week, as Shopify’s earnings once again showed a booming business with strong potential.

It is a bright spot in all the negativity.

Shopify stock rallies as revenue soars

Total revenue almost doubled in the second quarter, as Shopify continued to add new merchants at a feverish pace. Complementing this growth was the fact that Shopify also continued to add new merchant solutions, features, and capabilities.

There are so many reasons for Shopify’s revenue growth. As we dive into all of the reasons, we quickly realize how much this company has going for it. And we realize that there’s a well-diversified path to growth that has brought Shopify to where it’s at today.

New merchant solutions and features at Shopify

Shopify Balance is a no-fee business account to give merchants access to financial products they need for their business. This is especially helpful. The economy today has made this process all the more difficult at traditional banks.

Shop Pay Installments is a “buy now, pay later” product that provides more flexibility and payment choices. This will work to boost sales, increase cart size, and raise conversions. Shopify also launched the Walmart channel and introduced the Facebook Shops channel in the quarter. New big brands such as Snickers and Molson Coors have signed up with Shopify.

The future of commerce and retail is that it will be everywhere. Shopify is aiming to be the retail operating system. Its goal is to be everywhere merchants want to sell.

Shopify continues to invest for continued gains in the future

After the second quarter closed, Shopify continued to work at a feverish pace. More ambitious and forward-looking advancements were made in just one short month.

Shopify announced a partnership with the Government of Canada. The goal here is to bring small Canadian businesses online. Working with the government, Shopify will offer free trial periods, guidance, tools, and resources.

Shopify Studios is the most interesting investment out of Shopify. It reflects the company’s far-reaching and ambitious vision. Shopify Studios will debut in August, with its first series on Discovery. The series is called “I Quit.” It features real life entrepreneurs who gave up their jobs to focus on launching their own businesses.

Lastly, Shopify is offering Shopify payments to its U.S. merchants through Buy on Google. This combines the best search engine with the best buy and fulfillment capabilities of Shopify.

Shopify is not only a leading e-commerce player; it is a way of life.

Foolish bottom line

Shopify stock continues to blow the lights out, as this visionary company continues to impress. Shopify’s earnings results are just another reminder that this company is a force to be reckoned with. Shopify stock soared 10% this week and more than 164% this year. It is Canada’s success story and still has a big runway of growth ahead.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Fool contributor Karen Thomas has no position in any of the stocks mentioned. David Gardner owns shares of Facebook. The Motley Fool owns shares of and recommends Facebook, Shopify, and Shopify.

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