As Coronavirus Cases Slow, the Rally Will Resume for Shopify Stock

If you’ve followed my work for any length of time, you’ll know that I principally look for where opportunities will be, not necessarily where they are right now. And that’s the main reason I’ve been bullish for years on Shopify (NYSE:SHOP).

This Year's Online Shopping Surge Justifies the Shopify Stock Price
Source: BalkansCat /

Not only does Shopify stock have exposure to the burgeoning online marketplace, it’s also a great play at the intersection of pop culture and e-commerce. Unfortunately, the coronavirus from China — or more specifically, the extreme response to the outbreak — has temporarily devastated Shopify stock.

Still, the resilience of the underlying company meant that shares quickly rebounded. At time of this writing, SHOP is in positive territory for the year and by a wide margin.

After being cooped up at home, I’m sure that people are aching for anything that resembles the old normal. Naturally, this benefits Shopify stock as the underlying company was previously building off the momentum from younger millennials and the emerging Generation Z.

Expect a Slingshot Effect

If you think about what’s going on right now, everybody is living the sedentary lifestyle. For the young generation, this means plenty of engagement on Facebook (NASDAQ:FB), Snap (NYSE:SNAP), Twitter (NYSE:TWTR) and Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) YouTube, among other platforms.

Logically, this gives influencers even more opportunities to market various brands and products. Indeed, those that would have been studying or working if it weren’t for the coronavirus are now watching content on social media. Few other companies have funneled this influence into revenue quite like SHOP.

Frankly, these mandatory shutdowns may be the best marketing opportunity ever for Shopify stock. Even if you don’t believe that, SHOP continues to grow in relevance with its target audience. Now that’s something you can take to the bank.

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