Black Friday has come and gone, but investors are still quite interested in what happened over the weekend. Especially when it comes to companies that have seen a boost from Black Friday sales. So let’s look at some stocks that saw a major boost from the weekend, and what this could mean for the future of these companies.
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Shopify
Shopify (TSX: SHOP) did it again, just as predicted. The stock enjoyed yet another record-setting Black Friday weekend with an incredible US$9.3 billion in sales over the weekend. This was a 24% increase from the year before! Many questioned whether it would happen given many shoppers have stated they plan on cutting back spending this year.
It looks like for Shopify stock that wasn’t the case. More than 61 million consumers around the world purchased products powered by Shopify stock. It peaked with collective sales reaching US$4.2 million per minute at 12:01 p.m. EST on Black Friday. Overall, consumers were in particular seeking out apparel, accessories, health, beauty, and home and garden items.
The average cart for the weekend came in at US$108.12, with top selling countries the United States, United Kingdom, Canada, and Germany. More importantly was a 60% increase in sales made through Shop Pay.
This could be huge for the next year, with payments proving to be where a huge amount of income can come in. As subscriptions continue, this weekend proved to potential merchants that Shopify stock remains a top choice for future merchant growth. And for investors, the stock isn’t done yet at $100 per share.
Nuvei
Nuvei (TSX: NVEI) may not have put out data like Shopify, but it’s clear the point-of-sale (POS) company was prepared for Black Friday and Cyber Monday traffic. The company’s website touts its ability to take on any type of traffic, even with a huge increase from Black Friday discount seekers.
And it seems these discount seekers came out in bulk. Spending by Americans hit a record US$9.8 billion over Black Friday weekend. What’s more, they were mainly those hunting online for a deal.
Nuvei stock would have certainly seen similar momentum to Shopify stock, following a major uptick in sales from its clients. And it’s at a time when the company needs it, as Nuvei stock recently reported a loss of US$18 million compared to a US$13 million profit the year before.
For now, though, Nuvei stock certainly looks like more of a deal compared to Shopify stock. Shares are still down 30% in the last year due to the fall in ecommerce and tech stocks. Yet shares have recovered about 56% in the last month alone. So with good news coming in about sales climbing to record highs, now could be a great time to consider Nuvei stock as well.
Bottom line
While record results from Nuvei stock and Shopify stock are interesting, what’s even more promising is the future of the market. With record sales across the world, and these companies getting a piece, it shows that consumers are back out again. This could be the drive we need to push us into a bull market. Especially as interest rates and inflation continue to get under control.
