Why Did Shopify's Stock Stage A Strong Reversal Today?

Shopify Inc SHOP is trading higher Tuesday after the stock was upgraded by Loop Capital.

What Happened: Loop Capital analyst Anthony Chukumba upgraded Shopify from Hold to Buy and announced a price target of $1,400. The analyst cited strong growth in the coming years as a reason for the upgrade. 

“While the COVID-19 pandemic accelerated the shift to online shopping last year, we note the vast majority of retail sales still occur in physical stores, which indicates to us Shopify still has plenty of room to grow,” Chukumba said. 

SHOP Earnings: Shopify reported first-quarter financial results on April 28, with earnings of $2.01 per share beating the estimate of 73 cents per share. Revenue of $988.65 million beat the estimate of $865.48 million. 

Related Link: Why Lerner Group's Vanessa Martinez Is 'Very Bullish' On Shopify

Price Action: Shopify traded as high as $1,499.75 and as low as $685 over a 52-week period.

The stock traded down to nearly $1,020 this morning as the broader market sold off. At last check Tuesday, it was up 2.93% at $1,111.88.

Photo by deepak pal from Flickr.