Shopify Upgraded On Enterprise Market Push Amid 2023 Rally

An analyst upgraded Shopify's stock on Monday to "outperform". The company is growing in the enterprise market, selling ecommerce software and services. The stock of Shopify rose, continuing the strong recovery in 2023.

Michael Morton of SVB MoffettNathanson upgraded the shares on the basis of premium Shopify Plus services. Shopify Plus is a service that targets large companies, even though the majority of Shopify's revenue comes from small- and medium-sized businesses.

Morton stated that "while Wall Street was distracted with the shortcomings of Shopify’s fulfillment network the company implemented a series product improvements to make Shopify Plus an attractive ecommerce solution for the enterprise." These product developments weren't overlooked by the enterprise market or system integrators.

Shopify, a Canadian company, sold its fulfillment unit to a third party in early June. This helped ease investor concerns about the stock's rising value.

Shopify shares rose to 66.74 on the morning stock market trading today. They are up 88% for this year, as of the Friday market close.

Shopify Stock: Fulfillment Sale Lifts Shares

Shopify's stock has gained the most since May 4, 2009. The company announced at that time the sale of its fulfillment business to Flexport, a privately-held firm. In 2022, SHOP shares were also sold off amid concerns over management turnover and growing investments.

Morton added that "Web traffic for the Shopify Plus Login Portal is exceeding traffic to existing enterprise solutions." Shopify Plus' gross merchandise volume has been increasing and is gaining market share.

Shopify launched Commerce Components in May. The program allows businesses to integrate Shopify’s back-office and checkout services with existing online platforms.

Shopify's stock has a relative strength rating of 96, out of the maximum 99 possible.