Home Cannabis Can Cannabis Keep Shopify Stock High?

Can Cannabis Keep Shopify Stock High?

Walmart Canada is exploring the cannabis business

In Canada, Shopify (SHOP) seized the pot moment. When legal cannabis for recreational use kicked off in Canada last year, many government-sponsored cannabis retailers—as well as other prominent vendors—chose to host their digital shops on Shopify’s platform for online shoppers, according to a Bloomberg report. As a result, Shopify is powering many digital cannabis shops in Canada, and now the company is looking beyond Canada to expand its cannabis business.

“Shopify is what’s powering those retail sales [of cannabis in Canada] and we think that we can do a great job helping other countries and other regions do the same thing,” CNBC recently quoted Shopify’s chief operating officer, Harley Finkelstein.

Reuters reported last year that Walmart’s (WMT) Canadian unit was also considering getting into the business of selling cannabis products.

1

Shopify’s revenue rose 54%

More than 800,000 businesses operate digital retail stores on Shopify’s platform, according to the company’s website. Merchants that make more than $1.0 million in gross sales through Shopify’s platform increased 58% in 2018, according to a statement from the company, indicating the growing adoption of Shopify’s services by large sellers. Shopify generated $343.9 million in revenue in the fourth quarter, which ended in December, representing an increase of 54% year-over-year. Alibaba (BABA), Amazon (AMZN), and eBay (EBAY) reported revenue growth or 41%, 20%, and 6.0%, respectively, in the December quarter.

Must Read