Why Shopify Inc. (SHOP) Went Up On Wednesday?

We recently published a list of Pulse of the Market: Wednesday’s 10 Top Performers. In this article, we are going to take a look at where Shopify Inc. (NYSE:SHOP) stands against other Wednesday’s top performers.

The stock market regained momentum on Wednesday, with all main indices ending in the green, as investors cheered the Federal Reserve’s decision to keep interest rates unchanged.

The tech-heavy Nasdaq led the gains, rallying 1.41 percent, followed by the S&P 500 with a 1.08 percent gain, and the Dow Jones, by 0.92 percent.

Optimism spilled over into companies, with 10 particularly leading the charge. In this article, we have identified Wednesday’s 10 best performers and detailed the reasons behind their gains.

To come up with the list, we considered only the companies with a $2-billion market capitalization and $5 million in trading volume.

An enthusiastic customer completing a purchase and receiving an order confirmation via one of the companies online sales channels.

Shopify Inc. (NYSE:SHOP)

Shopify rallied by 8.01 percent on Wednesday to close at $101.54 apiece as investor sentiment was fueled by news that the e-commerce platform is transferring its US listing to the Nasdaq Global Market from the New York Stock Exchange (NYSE).

On Tuesday, SHOP said it expects its Class A Subordinate Voting Shares will end trading at market close on March 28, while listing on the Nasdaq is expected to commence on March 31.

The sentiment was further boosted by news that it acquired AI startup Vantage Discovery as it seeks to expand its artificial intelligence capabilities.

Founded in 2023, Vantage leverages large language models to help retailers enhance their on-site search tools, which in turn would deliver more personalized and relevant results for shoppers.

Overall, SHOP ranks 7th on our list of Wednesday’s top performers. While we acknowledge the potential of SHOP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as SHOP but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.