Shopify, Inc (NYSE:SHOP) may benefit greatly from Canada’s legalization of recreational marijuana usage on October 17th.
Shopify is a Canadian e-commerce company that helps small businesses and partners with digital payments, marketing, and shipping. It has already signed deals with major cannabis producers and retailers, and it is likely that Canada’s legalization of the substance will pave the way for the platform to distribute it widely.
Investor’s Business Daily provides a quote from Capital Markets analyst Monika Garg:
“Shopify has been selected by several Canadian provinces, including Ontario and British Columbia, to run their e-commerce websites and in-store point of sale solutions,” Garg said. “Shopify has also signed deals with the largest private cannabis producers and distributors, including Canopy Growth and Aurora. We estimate that cannabis sales in Canada could top $10 billion in (gross merchandise volume) annually.”
Shopify has showcased its progressive mindset with the release a new augmented reality app for iPhones and iPads on Tuesday with tools to make purchases more realistic and life-like for consumers.
Shopify,Inc shares fell $0.10 (-0.06%) in after-hours trading Wednesday. Year-to-date, SHOP has gained 62.97%, versus a 10.06% rise in the benchmark S&P 500 index during the same period.