Shares of Shopify (NYSE:SHOP) jumped 51.7% in April, according to data from S&P Global Market Intelligence . The stock had slipped roughly 10% in March’s trading, but its share price rebounded with the market last month and also benefited from strong user engagement.
Shopify climbed in conjunction with positive momentum for the broader market early in the month, and then got a dramatic boost after chief technology officer Jean-Michel Lemieux stated the company was seeing a traffic surge.
Retail shutdowns stemming from the novel coronavirus have driven increased use for many e-commerce platforms, and Lemieux published a message on Twitter on April 17 stating that Shopify’s platform was seeing daily engagement in line with what the platform experiences on Black Friday.
Shopify has been enjoying stellar momentum over the last year, and Lemieux’s statement in mid-April signaled that the business wasn’t just holding up well amid the coronavirus crisis; it was actually seeing heightened levels of engagement.
The company also revealed its consumer-focused app, Shop, on April 28. Its e-commerce software ecosystem has mostly been focused on services for creating and managing online stores, but Shop provides consumers with tools for purchasing and discovering items at local businesses, personalized product recommendations, and order tracking.
Shopify is scheduled to report first quarter results and host a conference call on May 6. When the company reported fourth quarter results in February, it laid out a target for first quarter revenue between $440 million and $446 million — representing growth of roughly 38% year over year at the midpoint of the target.
The company also guided for an operating loss between $101 million and $105 million and a non-GAAP (adjusted) operating loss between $30 million and $34 million.
The company suspended its guidance for 2020 with a press release issued early in April, but it still expects to meet or exceed its first quarter performance target. Shopify is also scheduled to hold its annual shareholders meeting on May 27.