Thriving cap shoots past Wells Fargo, McDonald’s and UPS
The HelpCenter app team has analyzed the global ranking of the selected recognized companies by market capitalization, revealing that the Shopify market cap lies at $183.04 billion at the moment of writing.
A5 NEWS – The company’s worth has now surpassed such brands as Wells Fargo (WFC) that has a market cap of $172.57 billion, UPS (UPS), with a market cap of $172.16 billion, and McDonald’s (MCD) ($171.33 billion). The Canadian e-commerce giant now ranks higher than BHP Group (BHP), Texas Instruments (TXN), Accenture (ACN), and more, and keeps improving its position in the global ranking of TOP 100 companies by market capitalization daily.
Shopify booms as consumer behavior changes amid the pandemic
Pandemic-induced social distancing, remote work, job losses, and a tough economic situation nudged thousands of new sellers to Shopify. The number of new stores grew by 62% by May 2020, becoming a new source of income for many and boosting annual Shopify revenue by 86% in 2020.
Since the demand for online shopping has significantly increased, nearly 37% of Shopify store owners have experienced a boost in sales and managed to grow their revenue by at least 40% since the outbreak of COVID-19, the HelpCenter survey has found.
The HelpCenter app’s co-founder Ernestas Petkevicius commented on the reasons behind Shopify success:
“The surge in Shopify market capitalization could have been anticipated. The direct-to-consumer economy is here to stay and owning a small or medium online business is very appealing to many wannabe entrepreneurs. This trend of remote work and working from anywhere will benefit Shopify for many years ahead, therefore, we should witness the rapid growth of Canadian juggernaut and maybe even a competition with Amazon in the future. On the other hand, the trend is to grow your business on Shopify and also Amazon. So this potentially is benefiting all market participants of the so-called new economy.”
Shopping apps are already being used by 78% of users globally, ranking second in popularity after music apps. As e-commerce sales are expected to keep the same pace, Shopify will likely continue to attract various businesses aiming to go online, since it offers a highly scalable, easy to get started solution at affordable rates.
The company has been actively helping smaller businesses to adapt to this new reality. Shopify has already implemented such changes as making gift cards available to all sellers, facilitated curbside pickups, and introduced a consumer-facing shopping assistant app.
Shopify has also invested $350 million US dollars into a payments platform Stripe that helps to accept payments and manage online businesses. These ongoing improvements are focused on helping merchants to “compete in any retail environment and engage directly with their customers wherever they are.”