Because of the push and wide following from social media, meme stocks like AMC, GME, and BB are trading at levels way higher than what they’re worth.
Meanwhile, there’s growth stock Shopify (TSX:SHOP)(NYSE:SHOP), which is poised for its next leg of growth with these latest developments.
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Netflix’s new e-commerce website is powered by Shopify
Netflix has joined some of the biggest brands with its own Shopify shop. Recently, the world’s biggest streaming company launched its Shopify store to sell merchandise related to its wide variety of shows, tapping into the buying power of its broad subscriber base across the globe, totaling more than 207 million subscribers.
The online store is currently available in the United States only, but it’ll expand to other countries in the coming months.
According to Josh Simon, Netflix’s VP of consumer products, Netflix.shop will sell “exclusive limited editions of carefully selected high-quality apparel and lifestyle products tied to our shows and brand on a regular basis.”
The first items available this month include “streetwear and action figures based on anime series Yasuke and Eden; as well as limited-edition apparel and decorative items inspired by Lupin in collaboration with the Musée du Louvre. Netflix will also soon release exclusive products for beloved titles like The Witcher, Money Heist, and Stranger Things online.
Facebook and Google are adding Shop Pay
The latest development has it that businesses selling on Facebook and Google will soon be able to use Shopify’s Shop Pay to perform one-click checkouts.
The top reason why juggernauts are partnering with the giant is probably that Shopify’s number one focus is to help businesses sell online. For instance, Shop Pay boasts being the highest-converting checkout on the internet.
Shopify revealed the rough timeline of integration as follows. It’ll start with Facebook, then Instagram (a subsidiary of Facebook) in the summer, followed by Google later this year. Across the platforms, more than one million merchants could then use Shop Pay, even if they don’t use Shopify’s online store.
Shopify partners with Affirm
Shopify also partnered with Affirm, for which it owns an equity stake, to officially launch Shop Pay Installments, which will be immediately available to U.S. merchants and will be automatically enabled for new merchants when they enable Shopify Payments and Shop Pay.
The press release highlighted that Shop Pay Installments has been proven to boost sales. Specifically, 25% of merchants using it, during early access, saw 50% higher average order value compared to other payment methods. In addition, merchants saw 28% fewer abandoned carts through Shop Pay Installments after switching from a third-party buy now, pay later solution.
The Foolish takeaway
Shopify’s gross merchandise volume (GMV) reached US$120 billion in 2020 — a growth of 96% year over year. Its GMV growth further accelerated to 114% in the first quarter. Not surprisingly, its revenue growth has historically aligned with its GMV growth.
The three latest developments along and the continued/increasing need for businesses to sell online are bound to pave the way for strong growth in Shopify’s GMV (and resultantly) revenue.
Analysts currently still think Shopify stock is fairly valued. Additionally, the consensus price target probably has not been fully updated to reflect the latest changes. This makes the tech stock a much better and more secured growth investment than meme stocks!
