Shopify Inc. (NYSE: SHOP | SHOP Price Prediction) shares shot up to start out the week after Walmart Inc. (NYSE: WMT) announced a partnership with the Canadian e-commerce company. The goal is for Walmart to capture a larger piece of the online shopping pie.
The coronavirus has accelerated the trend of e-commerce across the world. Shopify and Amazon have been some of the biggest winners from the pandemic as they operate some of the biggest e-commerce platforms in the world.
As part of this partnership with Shopify, Walmart is expected to add roughly 1,200 Shopify sellers to its marketplace this year. The deal is focused on adding small- and medium-sized U.S. businesses to Walmart’s online platform.
In the past month, Walmart noted a 74% increase in quarterly e-commerce sales and discontinued operations at the e-commerce start-up Jet.com, which it had previously acquired for $3.3 billion in 2016.
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Currently, Walmart operates the third-largest online marketplace in the United States behind Amazon and eBay. It’s worth noting that both Amazon and eBay already channel partners for Shopify, and Walmart making this step only makes sense.
Excluding Monday’s move, Shopify stock had outperformed the S&P 500 and Dow Jones industrial average with a gain of about 87% year to date. In the past 52 weeks, the share price was up 142%.
Shopify stock traded up about 7% in Monday’s premarket at $791.00, with a 52-week range of $281.69 to $844.00. The consensus price target is $729.16.
Walmart stock traded up marginally to $118.14. The 52-week range is $102.00 to $133.38, and the consensus price target is $135.06.
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