Despite its platform suffering a major outage on Cyber Monday, Canadian e-commerce company Shopify (SHOP) still managed to post record sales of $14.6 billion during the U.S. Thanksgiving weekend.
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The Ottawa-based company said its sales grew 24% year over year between Black Friday on Nov. 28 and Cyber Monday on Dec. 1. Shopify said that its online transactions totaled $5.1 million per minute on Black Friday as demand surged.
According to just-released numbers from Shopify, more than 81 million customers worldwide made purchases from its brands during the U.S. Thanksgiving holiday weekend, which is widely regarded as the biggest shopping event of the year.
Shopify helps businesses run their websites and online sales channels, offering software for merchants as well as advertising and payment processing. Shopify claims to handle 10% of all U.S. e-commerce transactions. The company hosts online storefronts for retailers such as Reebok and Mattel (MAT).
Outage at Shopify
The record sales posted by Shopify come as a surprise given that the company’s platform endured a serious and sustained outage on Cyber Monday. According to the website Downdetector, as many as 4,000 Shopify users reported problems accessing the e-commerce company’s website on Dec. 1.
The outage left thousands of Shopify’s business customers unable to manage transactions during arguably the year’s peak online shopping event. By the end of Dec. 1, Shopify said its services had largely been restored although some issues remained into the evening.
Is SHOP Stock a Buy?
The stock of Shopify has a consensus Moderate Buy rating among 27 Wall Street analysts. That rating is based on 17 Buy and 10 Hold recommendations issued in the last three months. The average SHOP price target of $180.36 implies 15.79% upside from current levels.
