Shopify Inc., which plans to move from the New York Stock Exchange (NYSE) to the NASDAQ, has rallied this week to surpass the $100 threshold again.
Investors still see the announcement as positive, even though it is not significant for the company.
Shopify’s stock is down over 20% from its high for the year.
Why does Shopify stock up on a Thursday?
Investors are pleased that Shopify has chosen to move its US listing from Nasdaq to Nasdaq, because the stock exchange is known for its focus technology companies.
They’re rewarding SHOP today as the shift aligns with other innovative tech names. This could increase its visibility among growth-oriented fund and tech-focused investors.
Overall, the decision of the management to move the listing to Nasdaq has led to a positive market sentiment.
Investors see it as a strategic alliance with the tech industry, which could lead broader exposure and greater liquidity.
The filing suggests that Shopify is positioning itself to have a dynamic future in e-commerce.
Shopify’s stock is up by nearly 100% from its 52-week low.
SHOP recently acquired AI company
Investors flock to SHOP because they are positive about the Canadian firm’s purchase of Vantage Discovery.
Vantage, a San Francisco startup, creates artificial intelligence-enabled searches for online retailers such as Shopify.
The financial details of the transaction have yet to be revealed.
The acquisition has fueled optimism, as it demonstrates the company’s commitment towards improving its technological capabilities.
Shopify has not been left behind on the AI battlefield.
It uses emerging technology to improve its operations and provide new conveniences to its customers.
Shopify is not yet a dividend stock.
Is it too Late to Invest in Shopify Stock?
Analysts remain bullish on SHOP despite recent pressure on Shopify’s stock amid a wider sell-off of tech stocks due to the uncertainty coming from the White House.
Davidson analyst Gil Luria reaffirmed his “buy” recommendation on Shopify’s stock earlier this week.
His $150 price target for the ecommerce giant suggests a potential gain of another 50% over current levels.
In a recent note, he told his clients that the strength of the company’s earnings report indicates that it continues to be the preferred platform for merchants around the world.
Luria is bullish about Shopify stock because its investments in marketing and sales are helping to increase its merchant base, as well as increasing payment penetration.
He concluded that SHOP’s free-cash flow margins of mid-teens by 2025 demonstrate its financial strength and make it more attractive to buy at current levels.
This post Why is Shopify’s move from NYSE to NASDAQ significant for investors? This post may be updated as new information becomes available
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