Shopify stock hit an all-time high Wednesday after the e-commerce firm unveiled plans to build a U.S. distribution network to store and ship products for its merchant customers.
In addition, the move takes aim at Amazon.com (AMZN), which by far has the biggest product distribution network for online retailers.
The company announced plans for the centers at its annual developer conference. The conference is called Shopify Unite.
Based in Ottawa, Canada, Shopify sets up e-commerce websites for small businesses. It partners with others to handle digital payments and shipping.
Shopify Taps Artificial Intelligence For Distribution Network
In a company blog, Shopify said its distribution network will use machine learning, a type of artificial intelligence, to ensure “timely deliveries and lower shipping costs.”
Artificial intelligence stocks to watch include companies in financial services, online dating, digital advertising, and business communications.
Furthermore, Shopify has upped international investments. It also has set a $30 million marketing campaign to build up its brand.
In May, Shopify reported first-quarter earnings and revenue that topped estimates. Adjusted earnings rose 125% to 9 cents a share, with revenue jumping 50% to $320.5 million.
Shopify stock has soared 87% from a year ago.
Shopify Inc. Class A Subordinate Voting Shares (SHOP - Get Rating) shares rose $0.98 (+0.30%) in after-hours trading Wednesday. Year-to-date, Shopify Inc. Class A Subordinate Voting Shares (SHOP - Get Rating) has gained 136.20%, versus a 17.78% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Investor’s Business Daily .
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