Sean Gallup
Shopify (NYSE:SHOP) is on pace to have its best month ever after Black Friday record sales.
Black Friday sales on the Shopify (SHOP) platform were up 22%, outpacing the 2.5% overall increase in spending this year. Shares of the stock are also 5.2% up today.
Implied average cart price rose about 5%, compared to about 4% last year, at about $110. Merchants’ revenues rose to $4.1B in global sales, setting a Black Friday record.
Ken Wong, stock analyst and managing director at Oppenheimer, said during a CNBC interview that he sees an upside for the stock target price.
“We were going into the holiday season initially a little more cautious, but I think these results definitely show that we could potentially be looking at an upside to our numbers likely outside the consensus,” he said, “closer to 17% GMV (gross merchandise value).”
In addition, global sales made on Shopify’s (SHOP) in-person sales system rose 33% year-over-year from 27% YOY last year.
“Shopify (SHOP) is no longer just a platform that is online first, hybrid second,” he said. “Over the last 18 months, we’ve seen a much bigger push to pure offline retailers. The trend is still early, but we shouldn’t just think of these guys as an e-commerce/direct to consumer type of a play.”
This success, he added, could also benefit some of its competitors, including Wix.com (WIX), Squarespace (SQSP), and GoDaddy (GDDY).
“Right now, it’s a percent of retail mix in the US,” said Wong. “They’re still in the high teens. I imagine that we should continue to see that number move up at least into the 40–50% over time.”