Shares of Shopify (NYSE: SHOP) After the e-commerce partner rose 6.4% to a record level of $ 1,134.32 on Tuesday, Walmart (NYSE: WMT), Announced the launch date of its eagerly anticipated subscription service.
Walmart + will provide many benefits to members, such as savings on gasoline and the ability to use Walmart’s new contactless solutions in its stores. But it is the free delivery benefits of the service that can be particularly valuable to members – and they are specifically designed to help Walmart gain ground on its arch-slavery, Amazon.Com (Nasdaq: AMZN)In the online retail sector.
Investors feel that Shopify will benefit from Walmart’s membership initiative. Image Source: Getty Image
Shopify stands for profit if Walmart + is a success. The online retail platform partnered with Walmart in June. As part of the deal, a select group of merchants from Shopify were allowed to list their products on a particular section of Walmart.com. The partnership was meant to include Walmart’s third-party market – an area where Amazon has benefited in the long run.
If sales at Walmart.com are boosted by Walmart + and its free delivery options, then Shopify’s merchants – and, by extension, Shopify itself – are likely to enjoy higher sales and profits. In return, investors bid for Shopify’s shares in anticipation of even more potential growth for the online retail star.
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Why Shopiz Stock Ascended to a New All-Time High Today, Originally Published by The Motley Fool