Shopify Earnings Boost Global E-Commerce ETF Interest | ETF Trends

Shopify, the e-commerce company that makes tools for small businesses to sell goods online, got a boost as the stock jumped 7.9% to close at $243.53 after its earnings release earlier this week.

Canada-based Shopify (SHOP) said adjusted earnings were 9 cents a share, up 125% from a year earlier, with revenue jumping 50% to $320.5 million. A year earlier, Shopify earned 4 cents a share on sales of $214.3 million.

Analysts expected Shopify to report a 5-cent loss for the quarter ending March 31, in connection with rising investments. Analysts projected revenue of $310 million.

“Ecommerce represented a growing share of the retail market in 2018, taking a 14.3% share of total retail sales last year, up from 12.9% in 2017 and 11.6% in 2016,” notes Digital Commerce 360. “More significant is that ecommerce sales represented more than half, or 51.9%, of all retail sales growth. This is the largest share of growth for purchases made online since 2008, when ecommerce accounted for 63.8% of all sales growth.”

Shopping and consumer trends are changing as more buyers rely on the convenience of online retailers to quickly and effectively meet their discretionary needs. As the retail landscape changes, investors can also capitalize on the trend through exchange traded funds that target the e-commerce segment.

Online Shopping Trends Continue

E-commerce stocks are a popular entree, and tend to get a boost around the holiday season as well, as the amount of holiday shipping done is substantial. As the trend toward online shopping continues, brick and mortar stores are at increased risk for bankruptcy

The Global X E-commerce ETF (NasdaqGM: EBIZ) is one of the newest exchange traded funds (ETFs) dedicated to e-commerce, and rival funds are benefiting this year from a slew of milestones for the online retail industry.

Other ETFs in the E-Commerce Sector include: Amplify Online Retail ETF (IBUY), ProShares Online Retail ETF (ONLN), and ProShares Long Online/Short Stores ETF (CLIX).

Online shopping’s “total rose from below 5 percent in the late 1990s to about 12 percent in 2019, according to the Commerce Department,” reports CNBC. “In February, online sales narrowly beat general merchandise stores, including department stores, warehouse clubs and super-centers. Non-store retail sales last month accounted for 11.813 percent of the total, compared with 11.807 percent for general merchandise.”

For more thematic investing strategies, visit our Thematic Investing Channel.